Editor Note: Out of respect for legitimate gold prices and gold investors, no
chart of the corrupt COMEX prices will
be shown. Such would be an exercise
in irrelevance and folly. The true price
for precious metals is much higher,
confirmed by the global shortages. Expect
the COMEX to be ignored and isolated,
just like the USDollar. Great intrigue
follows as both the COMEX and USDollar
will undergo a painful and unstoppable
demise, which unfortunately means none
of their precious metals prices are
accurate. The only chart worthy of presentation
is the spread between the widening paper
gold price and the physical gold price.
But it is too murky to pin down.

"All
people have to do is look at all the
dealers online and see that there is
very little physical to actually buy.
The large bulk dealers are all sold
out. When you see the prices online,
you see they contain $7 and $8 or more
in premiums now for the silver that
is available. I am already seeing a
disconnect from paper (COMEX) price
to physical price since the takedown
of the metals." ~ Sherrie (radio show host)

"The
orchestrated move against Gold &
Silver is to protect the exchange value
of the USdollar. The Federal Reserve
is creating one trillion new dollars
per year, but the world is moving away
from the use of the Dollar for international
payments, and thus as a reserve currency.
The result is an increase in supply
and a decrease in demand. That means
a falling price. The orchestration against
bullion cannot ultimately succeed. It
is designed to gain time for the Federal
Reserve to be able to continue financing
the federal budget deficit by printing
money and also to keep interest rates
low and debt prices high in order to
support the bank balance sheets. When
the Federal Reserve can no longer print,
due to Dollar collapse which printing
would make worse, bank deposits and
pensions will be grabbed in order to
finance the deficit." ~ Paul Craig Roberts (citizens beware
of private wealth vanishing)

"The
Petrodollar is based on the Black Gold
standard and it is dying, as is the
US Empire. But central banks all over the world
are buying Gold like there is no tomorrow.
Gold is assaulted by the Fed to maintain
Dollar credibility, while the Money
Power's international central banks
and other insiders are very grateful
for a 500-1000 dollar per ounce discount
to prepare for the transition. The New
World Order cannot collapse the financial
markets until they collapse Gold, get
our firearms, and get everyone into
paper. They are trying to get everyone
into the stock market, which will then
flash crash." ~ Anthony Migchels (of Real Currencies)

"The New York &
London banksters have succeeded in causing low sentiment among the
dull-witted gold owners who stare at
the corrupted COMEX gold price like
mesmerized puppies. But the bankers
are slitting their own throats with
respect to the big buyers in the East.
The Anglo-American banks are being drained
at lightning speed, making a major gold
default event soon in the making. The
fat banks are sitting on vast empty
boxes. This is exactly what gold owners
should hope for, yet they are depressed,
because they do not understand the end
game." ~ Jackass

"The
financial press seems to be awakening
to the wisdom of Gold ownership. Interview
guests include Chris Powell of GATA
and John Embry of Sprott, finally. Gold
investment is not so widely dismissed
as a barbaric relic anymore that earns
no yield. We have a simple case of Gold
being the best performing asset in the
2000 decade with a 300% rise. We have
a simple case of Gold being an obvious
hedge, when all major central banks
are locked in deadly QE bond monetization,
othewise known as hyper monetary inflation.
If they do not advocate Gold, the financial
press looks incompetent and stupid." ~ Jackass

"The
bankers just committed suicide on stage
in order to buy themselves another month
in their thrones. The trouble is the
thrones will become electric chairs.
But in the meantime, they announced
with big glitz a huge global discount
on Gold & Silver. The reaction (especially
in the East) will be to burn their thrones" ~ Jackass

"In
a conversation with Rick Rule last November
when he was in San
Francisco, an allusion was made to Eric
Sprott working with the Chinese and
Russians on some banking deal. No added
information since then. If it is true,
that would be extremely interesting." ~ Kyle (HTL subsciber in California)

"Saw
a sign on on a New York State Thruway
toll booth yesterday that read '5% DISCOUNT
IF PAYING IN CANADIAN CURRENCY' " ~ FOFOA weblog

## INTRO GOLDEN NUGGETS

◄$$$ STATISTICS THEORY SCREAMS THAT THE GOLD ASSAULT EVENT WAS NOT FROM
A FREE MARKET SUBJECT TO REGULAR RANDOM
MOVEMENT. THE EVENT ON APRIL 12TH WAS
A GRAND OUTLIER, WORSE ON APRIL 15TH.
TAKE A
WALK DOWN PROBABILITY LANE TO NOTICE
SEVERAL FIREY INCIDENTS THAT SCARRED
THE NATION IN MID-APRIL, POSSIBLY TIED
TO THE BLOOD SACRIFICE OF SATANISTS.
$$$

A report came from a person with inside exposure. The renowned London Trader
put back the other 50% of his gold position
after the smashdown, now 100% invested.
He also is dabbling with new silver
positions. The London
Trader says 1100 tonnes of paper gold
were traded on the futures market in
three days with zero corresponding physical
gold movement! Confirmation came
from Andrew Maguire, who claims that
500 tons of paper gold were traded on
Friday April 12th alone. It was a complete
paper ambush, with no heavy exits by
the multitude, as portrayed by the deceptive
press. On April 15th, the GLD reported
a decline of 4.22 tonnes from stated
gold holdings, now put at 1154 tonnes.
The total published annual global gold
mine production for 2012 was 2600 metric
tons. So the Boyz sold 20% of annual
production in a single day smashdown,
but they cut their own throats. Jim
Sinclair's forecast of over a year ago
for the paper prices to be driven down
to 1500 Gold and 26.00 Silver has been
hit.

On another note, there is growing talk in Switzerland
of a failure of the international banking
system, just another reason for the
central banks to unite to submerge the
gold price. The hint was given by the
ABN Amro gold default. A stunning conclusion
on statistical variations and likelihood
was provided by John Brimelow. He wrote,
"Friday [April 12th] was a 4.88
standard deviation move in the price
of gold. For simplicity sake let's call
it a five standard deviation move. Statistically,
we get a five standard deviation move
approximately once every 4776 years.
So we should not expect another move
like this out of the price of Gold until
[year] 6789. Currently the two-day
price change in GLD [ETFund shares]
is 16.65, which can be converted to
just over eight standard deviations.
I wanted to share what this comes to,
but the table I use only goes up to
seven standard deviations. Let's just
say the sun is expected to burn out
first." These are orchestrated
extreme events that scream of a rigged
corrupt market, not at all an equilibrium
based free market. The event on April
15th is even more unlikely. The two
events together are orders of magnitude
more rare than either one. The financial
market is rigged beyond belief.

Some reference calculations for your background. A quick referral to the normal
bell-shaped curve extreme tables bears
innteresting rarities. Beyond 7 standard
deviations, it is not worth the trouble
since the mathematics breaks down. For
example, a drop in gold price by 4 standard
deviations or more occurs with one chance
in 31.5 thousand. A drop in gold
price by 5 std deviations or more occurs
with one chance in 3.5 million, as seen
by the event described by Brimelow (assumed
3.5 million days to reach year 6789).
By 6 std deviations or more, one chance
in 1.013 billion. By 7 std dev or more,
one chance in 781 billion. As baseline,
a sizeable 31.7% occurrence of events
lies within one standard deviation of
the mean, the center of gravity otherwise
called the average. When considering
swings in each direction, a full 63.4%
vary within one std deviation of the
mean.

Worse still, is the Satanic element whose probability warrants mention. The
blood sacrifice to the beast is required
on April 19th. Major life changing national
events have occurred within the April
19 to 22 timeframe, events of horrendous
nature. They are not normal, listed
in what follows. Witness the Waco
fire in 1993 to drive out and eliminate
the Branch Davidians in Texas. Witness the Oklahoma City bombing in 1995 blamed on Timothy McVeigh, which destroyed
entire offices of Fannie Mae records
before a criminal investigation was
to result in arrest warrants, up to
the White House itself during the Clinton
Admin. Witness the DeepWater Horizon
sabotage in 2010, likely by Halliburton,
with numerous implications on Gulf Mexico offshore drilling
shutdown, expansion of onshore projects
including the newly popular fracking
methods which are within the Halliburton
monopoly on chemical supply. Witness
the Boston Marathon
in 2013.

All four events occurred within the April 19th shadow. For four events to occur
in closely linked dates around April
19th (say within a 3-day span) is one
chance in 50 to 100 million. Factor
in the Columbine
High School 1999 shooting incident in Colorado, and the Virginia Tech 2007 mass student
shooting incident, each having occurred
in mid-April also. For six events to
occur just in the month of April is
one chance in 3 million. See
the Miami CBS article (CLICK HERE).
The timing of such deadly events featuring
fire seem far more suspicious than mere
springtime events. Several clients warned
a week ago of a fiery mass incident
to occur. It happened on schedule. Worse,
the Waco fire has
been given a 20-year anniversary fiery
tribute at the Waco fertilizer plant. Already eyewitness video accounts identify a
small missile that hit the plant from
external source. It was not an accident.
The tree of liberty in the United States is being burned
by satanic forces, to usher in a police
state.

An additional element must be considered. The officials in charge conducted
a fire drill on the same days where
deadly events occurred: 911 World Trade
Tower, Batman Movie massacre in Aurora
Colorado, the Newton
County high school shooting in Mississippi, and the Boston Marathon. It seems the simple-minded lone
gunman model for assassinations and
explosives employed by the US
& UK security agencies
to foment terrorism with false blame
pointed, has another modus operandi
to emerge onto the scene. They conduct
a fire drill, and during the drill itself,
plant the incendiaries themselves in
a convenient manner, the observers none
the wiser. The nation is being terrorized
and ignited, as birth pangs for the
fascist police state, by its own security
agencies. As footnote, recall the threat
of anthrax put into the USCongress ventilation
systems was later found to be done by
a supposed rogue FBI worker. Yet another
lone gunman type that enabled passage
of the infamous Patriot Act, which the
Jackass regards as the Nazi Manifesto
to shred the undesired US Constitution.
Nothing patriotic about the fascist
rules and regulations in the Patriot
Act, a document steeped in national
treason and betrayal.

◄$$$ DUTCH GIANT ABN-AMRO REFUSED TO REDEEM GOLD ACCOUNTS WITH GOLD METAL
ON DELIVERY. THEY HAVE DECLARED INVENTORY
TO BE BARREN. THE GRAND DEFAULT CYCLE
HAS OFFICIALLY BEGUN. WITNESS THE ADVENT
OF CONTRACT BREACH IN FULL VIEW. $$$

Dutch ABN Amro has announced a halt to physical Gold delivery for contract settlement
and account redemption. They have no
gold bullion in inventory. The promise
of settlement in cash is a blatant and
egregious violation of trust, an admission
of corrupt practices, and a breach of
contract. They never had gold in
the last few years. The legal contracts
will be examined to court action. Lawsuits
could result. ABN Amro has changed its
precious metals custodian rules and
will no longer permit physical delivery.
Accounts will be marked and settled
at the bid or offer price in the supposed
market, corrupt though it may be. They
assure the safety and integrity of accounts,
but implicitly admit a sham game has
been their practice. See the Examiner
article (CLICK HERE)
and the Zero Hedge article (CLICK HERE).
Remember back in 2008, a banker at ABN
Amro supposedly committed suicide in
the forest. He knew too much, a mid-level
banker. He had to go. He went.

Gijsbert Groenewegen reported from the Netherlands,
the low lands where its gold merchant
house has reached to new lows. Clients
will be redeemed in cash only. ABN AMRO
defaulted on physical delivery, and
will be paying the customers in cash
instead. Notice the firm did not declare
any force majeure, a legal loophole.
An important milestone was reached in
the precious metals market. One of Europe's
largest banks ABN AMRO has publicly
defaulted on their gold delivery contracts.
They admit no physical gold available
for delivery, which bears repeating.
A controlled falling Gold price will
result in extreme shortages of the metal,
seen finally. See the 321Gold article
(CLICK HERE)
and the FOREX Magnates article (CLICK
HERE).
The significance should be carefully
embraced and understood. The Dutch delivery
breach of contract will eventually bring
the entire Allocated Gold certificate
fraud into the open, and ultimately
collapse the banking system. Even though
ABN Amro is relative small, in this
case size does not matter. The declaration
forewarned the gold market ambush assault,
or some similar event like a market
default.

◄$$$ USMILITARY WILL EVENTUALLY ACQUIRE THE MAJOR MINING FIRMS FOR NATIONAL
SECURITY REASONS. BUT FIRST THE MAJORS
WILL ACQUIRE HUNDREDS OF TINY JUNIOR
FIRMS FOR PENNIES. THE END OF THE MINING
STOCK NICHE WILL COME SUDDENLY. SOME
INTENSE COMPETITION WILL COME FROM THE
CHINESE, WHO HAVE ALREADY EMBARKED ON
THE ACQUISITION TRAIL. $$$

Permit the Jackass to speculate. Gold has great value to the syndicate. The
vast sprawling criminal organization
that has wrested power and control of
the USGovt holds power in USDept Treasury,
in the USCongress (writing financial
legislation), in regulatory bodies like
the CFTC & FDIC, in the press networks
(propaganda), and the USMilitary (toward
secure energy supply & narcotics
industry). They can exercise their power
at any time. The acquisition suddenly
of Barrick Gold, for instance, might
come when it is clear the firm cannot
sustain the course, and would go bankrupt.
Such a large scummy firm could not be
permitted to enter bankruptcy in the
usual fast lane with spotlights shining
on the desks, any more than Fannie Mae
could. Its halls contain too many
incriminating documents, dead bodies,
vendettas, and recorded trails to the
main power centers that include past
presidents.

Therefore, as gold mining stocks go down and down relentlessly, from a lower
official gold price and vanished profit
margins, expect the major firms in
the mining sector to be acquired by
the USGovt or USMilitary, or front front
firms for the US security agencies.
They are stuck in long-term supply contracts,
a boatload of forward sales contracts,
and are thus obligated to follow the
corrupted screen price. But first, expect
Barrick and Newmont and other large
mining firms to buy out hundreds of
the juniors soon. Hidden venture capital
funds will come from the USGovt shadows.
Then later, the USMilitary with narco
money will finance a private equity
buyout of the major firms, all under
the handy national security premise.
However, the USMilitary and their fronts
might enjoy success in acquiring only
the large North American gold mining
firms, since the rest of the world's
mining giants will be listening to and
accepting large Chinese bids. The
Chinese are very busy, and have stepped
up their programs to secure the global
gold supply, with a focus on all except
North America.
The hunt for gold hard assets is on.
The Chinese will turn aggressive
in the hunt for the ultimate in hard
assets. They are loaded with cash, sure
to dump USTBonds for the mining rights
and output. See the Economic Times
of India article (CLICK HERE).

Do not expect a confiscation of gold house to house in American cities. Instead,
while the USGovt security agencies are
busy removing (stealing) gold coins
and jewelry from bank safety boxes,
the USMilitary interests will probably
conduct large scale acquisitions of
the major mining firms for national
security reasons. The hedge fund suppression
with Wall Street cooperation has enabled
the juniors to be vulnerable to acquisition
for pennies per actual dollar value
in true assets. The narco money conversion
into venture cap slush funds will be
easy, as heroin profits could quickly
be converted to deep storage gold. Five
years down the road, when the mines
have beens depleted, they might be subjected
to IPO offeings to the hapless public,
who would eagerly buy yesterday's story
from the same crooks who ushered in
the housing and mortgage finance congames,
again. The cycle never ends.

◄$$$ ROUNDUP OF REPORTS FROM AROUND THE WORLD ON THE EXTREME SHORTAGES
OF GOLD & SILVER IN ANY FORMS. PRESSURES ARE BUILDING FOR A REJECTION OF THE OFFICIAL
PRICING SYSTEMS. VERY LOUD CRITICISM
WILL COME FROM AROUND THE WORLD, AND
SERVE AS A PROXY VOTE AGAINST THE ANGLO-AMERICAN
EMPIRE LACED WITH DESPICABLE CORRUPTION
AND SADISM TOWARD INVESTORS AND SAVERS.

BEAR IN MIND THAT IMMEDIATELY BEFORE THE APRIL 12TH AND 15TH AMBUSH ASSAULTS,
THE DRAINAGE OF C.O.M.E.X. INVENTORIES
AND DEPOSITORIES WAS REPORTED. A DEFAULT
EVENT WAS IMMINENT, WHICH MOTIVATED
THE ILLICIT AMBUSH ASSAULT WITH A MOUNTAIN
OF NAKED SHORT CONTRACTS. THE SHORTAGE
IS GLOBAL. THE TRUE PRICE IS MULTIPLES
HIGHER FOR BOTH GOLD & SILVER. $$$

Permit the Liberty Gold & Silver article (CLICK HERE)
to serve as the baseline global survey.
Stories from several other articles
will be dotted among their many itemized
accounts. A few direct client anecdotes
will be added also. The result is a
strong statement that attests to the
breakdown of the precious metals market.
History is being made with an ambush
of the gold market worthy of historical
annals, which should feature corruption
as a key element. The COMEX and LBMA
are deeply fraud-ridden in management,
regulated by the equally corrupt and
complicit Commodities Futures Trading
Commission (CFTC). Their objectives
are to preserve banker power over government
and the public, not to ensure a fair
equitable market. Therefore, the suppressed
price for precious metals will result
in global shortages and eventually the
total shutdown of the COMEX, possibly
with legal prosecution and lawuits seeking
damages. Supplies are fast disappearing,
especially for Silver, if not from lack
of supply then from withdrawn supply
to seek a more fair price at a later
date.

Set the stage with some data on dire shortages before the ambush assault in
the Gold & Silver corrupted market
run by the criminal banker elite. COMEX
registered silver inventories fell drastically
in the first week of April, as registered
supplies declined by a massive 10% in
just 48 hours. This happened before
the price plummeted. A staggering drainage
of physical silver inventories continued
on April 8th, as Brinks, CNT, and Scotia
all reported massive withdrawals of
silver from their COMEX depositories.
The biggest withdrawal came in the
CNT vault, where 1.138 million ounces
(including 737 thousand Registered ounces)
were withdrawn. An astonishing 17.3%
of CNT's entire physical silver inventory
vaporized overnight! Nearly 4 million
ounces of physical metal suddenly vanished
from COMEX vaults. This happened before
the price plummeted. Recent reports
indicate that the Russian central bank
made a significant purchase in excess
of 25 tons of silver in late March before
the price plummeted. See the Silver
Doctors article (CLICK HERE).
One is left to wonder if the Russians
might have precipitated the ambush assault
event. If done, then the Cyprus bank
account attack served as motive. Time
will tell, as reports arrive in verification.

Take a survey of the global situation on precious metal shortages. Nearly
all major wholesalers in the United
States and the rest of the world, Asia
included, are completely out of stock
for smaller denominated silver rounds
and bars, with no projected delivery
dates in sight, or else long indefinite
waiting periods. At least 12 to 15 clients
checked their local favorite coin shops
or bullion coin stores, all in the United
States and Canada, only to be told that
nothing was in stock for purchase. Too
numerous and identical in recounted
stories to offer quotes. This is a worldwide
phenomenon. The other side of the table
indicates the tremendous surge in precious
metals demand on a consistent global
basis. The Liberty Staff concluded,
"Ladies and gentlemen, it is
becoming patently obvious that world
citizens are waking up fast to the inherent
risks of fractional reserve private
central banking, and the extreme
threat that burgeoning government debt
means for them. Wise people everywhere
are no longer looking for yield but
are seeking safety in ever increasing
numbers. And, they are looking for it
hard and fast. What they are finding
is the ultimate safety for wealth protection,
namely, Gold & Silver."
The trust in banks will become much
worse.

The reputable Business Standard of India reported acute shortages of gold.
The major jewelry manufacturing centers
in southern India face critical shortage of gold ahead
of the wedding season. This has occurred
despite a record import of the metal
last financial year in preparation.

Turkish gold imports climbed to an eight month high in March. Silver imports
rose 31% from a month earlier. Gold
imports increased to 18.26 metric
tons, the most since July, compared
with 2.91 tons a year earlier, over
a 6-fold rise. The nation of Turkey was the
fourth largest gold consumer in 2012.

In Thailand, several
US
ex-patriots living in Bangkok
report that gold dealers are completely
out of bullion products other than
minor amounts of jewelry. They claim
not a single ounce of gold bullion
available for sale. The information
Ander reported to the Silver Doctor
was that there is not one ounce of
Gold bullion to buy all of Bangkok, possibly the whole of Thailand.

In China, gold demand is surging. Their domestic
gold consumption is outpacing its
internal production by a 5.5 to 1
ratio at the margin. China's
mining output was up 5.8% in 2011
but its domestic consumption of the
yellow metal increased by 33%.

In Hong Kong, reports are common of long lines at
precious metals dealers, with massive
buying but almost zero selling. Some
dealers claim to have sold more gold
in one day than they normally do in
three months. In some case clients
are buying over a $million in gold
with cash, taking it out the doors
in gym bags!

The USMint reports massive silver sales, bringing its 2013 total to an
extraordinary 15.868 million ounces
this year, as of mid-April. The pace
will surely surpass the current annual
record. Almost all retailers and major
wholesalers are completely out of
stock. The earliest expected shipments
are at least four to six weeks away.
Extremely tight physical supplies
have resulted in premiums on Silver
Eagles to skyrocket. The wholesalers
are on 4-6 week delays for shipments
of Silver Eagles.

Tulving is still showing Sold Out signs. Based on a conversation with Dave
in Denver last week, Tulving has not received their next allocation
of silver eagles. They are not even
taking orders from customers. Apmex
had an inventory of 38,000 ounces
on Wednesday, but by Friday they were
sold out.

A personal friend in Vancouver British Columbia
reported on a phone call to Johnson
Matthey. They told him they had a
100-oz silver bar available for C$2450
but with two weeks for delivery. They
also told him he could buy lots of
2013 Canadian Maple Leafs for C$1492,
which was only about $100 over spot,
with built-in 4-5% vig for exchange
rate differential.

The USMint report gold sales are setting monthly records. Last year in
April, a total of 20,000 ounces of
gold bullion coins were sold. As of
April 16th this year, the USMint has
sold over 50,000 ounces of gold. Expect
a five-fold increase year over year
for the month of April. The USMint
has reported no 2013 Gold Buffalos
available until May 23rd.

A trusted survey of US bullion wholesalers reports a sellers/buyers are
occurring in over a 50 to 1 ratio.
It has gone hypberbolic. Expect the
ratio to rise further until a fair
price is posted.

Huge wholesale silver premium increases have been reported. The unprecedented
shortages in silver have resulted
in huge premium increases for silver
dealers at all levels. Premiums for
US Eagles and Canadian Maple Leafs
are increasing on a daily basis.

Premiums for Junk Silver are completely off the charts. The reported premium
of $9 per ounce over spot for pre-1965
US
silver coins is the highest in history.
Wholesale premiums for Junk Silver
have risen 20-fold in the last six
months. More importantly, almost none
can be found anywhere. Some dealers
are taking orders with three months
in waiting time.

Zero inventories are reported at major private USMints, known as bullion
fabricators. Two of the largest in
North America, A-Mark Precious Metals
of Santa Monica California, and the
NTR Bullion Group of Dallas Texas,
have notified their retail dealers
that sales of most silver products
have been suspended. A-Mark has stopped
taking orders for all its 1-oz, 10-oz,
and 100-oz rounds and bars. No date
has been cited for the resumption
of sales.

Retail coin stores are completely out of new stock. The majority of local
retail coin dealers are entirely out
of stock of any silver products. Surveys
reveal almost no customers selling,
but where the requests for purchase
are at a frenzied level. The silver
shortage situation is fast approaching
an extreme level.

## DESPERATE BANKERS COMMIT MARKET SUICIDE

◄$$$ THE APRIL 12TH SMASHDOWN INVOLVED 500 TONS OF PAPER GOLD WITH NO
METAL IN MOVEMENT (TO BE SURE). THE
SELLOFF WAS 20% OF ANNUAL GOLD MINE
OUTPUT ON A VOLUME BASIS. THE BANKSTERS
ARE ABSOLUTELY DESPERATE. NO RISK PREVAILS
FOR HIGH VOLUME NAKED SHORTING ANYMORE,
SINCE A ROUTINE OCCURRENCE. DIRECT CAUSE
& EFFECT TO THE SLAM AMBUSH EVENTS,
IN ORDER TO RETRIEVE SUPPLY. ONLY A
SHORT AMOUNT OF TIME WAS BOUGHT. THE
STARK CHANGE IS THE EXTREME PRICE DIVERGENCE
BETWEEN PAPER GOLD AND METAL GOLD, AT
LEAST 40% APART. NO PRICE CHANGE HAS
BEEN REALIZED IN THE EASTERN GOLD PRICE
WHERE PHYSICAL TRANSACTIONS IN LARGE
VOLUME DOMINATE. $$$

The MF-Global incident in late November 2011 destroyed trust in brokerage futures
accounts. The April 2013 gold market
ambush attack will destroy trust in
the COMEX price discovery system entirely.
Several communications were made with
my main sources of information. The
most valuable were collected. They follow
in prose with some order and editing,
but they are the thoughts of a couple
key sources. Paper gold is paper, and
physical gold is metal, with no connection
between the two, and finally no connection
between their markets. Physical is all
that counts, since everything else is
Kabuki theater featuring staged performances
for public consumption, which shape
public opinion and perceptions. If
a large order were placed in the physical
market with a buy order in the open
for 15 tons, the price would show $2000
to $3000 within an hour. People
are totally clueless how the upper levels
of the gold market really work. The
common people do not understand what
is really going on, but they never do.
The events last week will eventually
trigger a mega blowback for the Western Boyz responsible for the rigging, since trust is fast evaporating
within a system that depends upon trust
to continue. It is truly a great time
for buyers of physical metal, if one
can find it in sufficient quantities.
But only minor quantities can be found
at the publicized price. When the paper
Boyz knock the price down, it is always
beneficial to do off-market transactions.

In the end phase, events always accelerate before the key implosion. We are
entering this phase now. Physical goes
for a premium and not with discounts,
unless you have a seller by the shorthairs
and in urgent need for cash. However,
it has proven prudent to treat big sellers
in dire need to sell with the utmost
respect when all others kick them around.
These people are normally very well
anchored into various networks, and
treating them properly earns their respect
and wins unrestricted access. The
system is at its end and will implode
at an accelerating speed. It is defacto
game over. Only hard assets will
survive with precious metals at the
core. The Friday event was noting but
a paper trick, and Monday a followup
in a climax. All you are are witnessing
now is a death struggle on the top deck
of the Financial Titanic. Expect to
see a slingshot effect that will bring
things into balance. Sit back and watch
the game unfold. There has been a major
squeeze on the physical side for a very
long time. Like with the Cyprus stunt, the Boyz have essentially lost control
but are pulling every trick possible
to stay in the saddle for a bit longer.
However, the horses they ride are already
dead.

It is the Third World countries that will survive and prosper
on the Day After, since they are not
connected to the system. Their people
do not have an entitlement mentality
with broadbased costly systems. Their
people are faced with the hard realities
of life every day. The price to be paid
by the West will be horrific, with tremendous
wealth lost suddenly in a flash. People
and smart institutions should buy as
much Gold & Silver as can be obtained.
The bounty for the corrupt crew is smaller
with each slam ambush. Almost no large
accounts with strong hands changed a
bit. The astonishing fact of the
Gold market is that across the major
gold centers with very large transactions,
we have seen a zero change in the Gold
price, still over $2000 per ounce. Some
clients are pursuing very large gold
caches at any price. The game
changes with important climactic events.
These two days are such events. Expect
some powerful responses from the opponent
camps, since the gloves are off permanently.

My own Jackass thoughts in rejoinder run parallel, filling
in the dynamic gaps. The Boyz want to
kill demand by removing supply, but
that will only work in the West where
people are poorly trained on what money
is. The West has badly confused money
with legal tender, when currently accepted
money forms are denominated debt subject
to writedowns, and thus massive lost
wealth is to come. The lower posted
artificial price might aid in voluntary
gold confiscation brought to the table
by morons in the crowd. The COMEX could
actually shut down before long, like
soon, from vacant supply. No sane or
prudent mining firm will bring their
output as new supply to this broken
market. The disconnect is coming quickly.
The near empty inventory motivated the
grand ambush, but very little gold metal
was produced. Conclude that triggering
a force majeure might have been the
major overriding motive. Remember
the lunatic monetary policy by the USFed,
where they kill final demand by destroying
the USEconomy. The same paper mache
artisans are at work, as they have destroyed
the COMEX after chasing away its clients
with the MF-Global heist. THE DIVERGENCE
BETWEEN THE PAPER GOLD PRICE AND THE
METAL GOLD PRICE IS GROWING, CURRENTLY
AT ABOUT 40%. It means the Western Gold
market is broken. My Jackass forecast
for a price divergence has been repeated
for almost three straight years, and
it is here finally, having occurred.
Notice the contradiction, with huge
precious metal demand growth, followed
by lower price, therefore a broken corrupted
market. The Gold price is being pushed
down, because the Bad Guys want to buy
it from the Idiot Sheeple sellers.

The signal for an ambush came over a week ago, when ABN Amro defaulted on gold
delivery in the Netherlands. They and the
rest of the Boyz had no gold bars in
inventory. They need it desperately,
but the price drop will not win them
much gold. It will win them a force
majeure from which they will attempt
to wiggle out legally from a mountain
of contracts. The coin demand is rising
by 80% to 100% per year, again contradicting
the fallen price. Look forward to the
day when COMEX shuts down. The day will
come. However and urgent warnings. When
the COMEX shuts down, the event will
occur at the same time as several big
financial firms going bust. They will
use the occasion to steal private citizen
money in private accounts. If observers
want the COMEX to be busted, then they
must hope for a paper versus metal price
divergence even larger, like 100%. Therefore,
the Jackass is encouraged by the smashdown,
and increasingly annoyed by the childlike
whining within the gold community, which
really does not comprehend the gold
market at all. They fail to comprehend
that the COMEX price is not the true
valid defensible gold price which is
governed by equilibrium between Supply
& Demand. No equilibrium exists
at COMEX, only fraud. The fact that
it is all we have is immaterial. It
will go away because it is not tied
to the reality of real gold delivery
on real loading ramps by real burly
men using real trucks bearing real weight.

The recent events in the gold market smashdown means
the Boyz are dying an unspeakably horrible
death!! The losers are those who play the
dangerous rigged futures contract games,
having become victims. The losers are
those who depend on the COMEX price
for income, many being total fools employing
leverage, even after the exposed MF-Global
trap. My comments are not intended to
be insults unless you stare at the COMEX
price all day long like a mesmerized
rat. The divergence is absolutely
killing the banking syndicate. It will
pull apart more, from the ignored COMEX
market and from the final blows due
to arbitrage with the Shanghai Metals
Exchange. The Boyz are committing
suicide in front of our eyes, as the
East is draining planeloads of gold
from them. The Boyz will further destroy
Western wealth centers in defense of
their syndicate kingdoms. They Boyz
want to kill Western gold demand, but
they have instead killed their own big
hollow reed banks that are supported
by USTBond carry trade and narcotics
money laundering.

◄$$$ GOLD INVENTORY IN C.O.M.E.X. DECLINED THE MOST ON RECORD, SETTING
UP THE NEED TO CONDUCT ANOTHER ORCHESTRATED
MARKET EVENT. PAINT THE PICTURE TO SEE
THE MOTIVE THAT BUILT UP, APART FROM
THE INSOLVENCY OF THE HOLLOWED BANKS
THEMSELVES. THE BIG PLAYERS NO LONGER
TRUST JPMORGAN AS A WAREHOUSE LANDLORD.
THE GOLD BARS ARE BEING REMOVED SYSTEMATICALLY,
PUT IN SAFE PLACES. $$$

Some unusual records are being made. The collapse of the COMEX gold inventory
has declined the most ever seen on record.
Its collapse would require such data
seen, a good signal. A highly critical
jugular vein has been exposed, in a
discretely occurring event behind the
scenes. Over the last 90 days without
any announcement, stocks of gold held
at COMEX warehouses plunged by the largest
figure ever on record during a single
quarter. Records on eligible accounts
data began in 2001. The decline saw
a total drainage of physical inventories
of almost two million ounces of gold.
The market value was about $3 billion
(before the price impact). Nick Laird
wrote, "Eligible stocks which
are owned in LBMA/COMEX good delivery
form are being drawn down, which means
they are being removed from the warehouses.
As to how and why they are being removed,
that is a mystery. [Up until now], eligible
stocks were on the continual increase
throughout the bull market. Now that
trend has changed. The owners have taken
the gold offsite, and it is no longer
stored in COMEX warehouses. Are people
taking their gold out of COMEX storage
due to lack of trust? It is a mystery,
but I think it is more the majority
of long-term holders are taking their
gold elsewhere, because they no longer
want to store at COMEX."

Exactly, since it might vanish from raids or hypothecation. The risk of fraud,
theft, and bankruptcy is too much from
a business standpoint. A system shutdown
at COMEX could result in a grand vanishing
act for gold held in inventory, at a
time when criminal investigation (let
alone prosecution) is sorely missing.
TRUST IN COMEX IS SLIPPING AWAY, A VICTIM
OF THE BANKER CRIME WAVE. That so much
inventory has been removed is not testimony
of a gold bull market end. Rather, it
is a loud statement that following the
MF-Global sanctioned thefts, players
no longer trust JPMorgan with being
a landlord at a warehouse. They have
stolen from clients.

The bottom of the barrel has been touched in London.
Deep damage from the massive drain between
March and July 2012 (reported by the
Hat Trick Letter) in off-market pressured
sales to Eastern entities have made
a severe impact. During these critical
declines, the largest inventory drainage
has been reported from JPMorgan Chase
& Scotia Mocatta warehouses. Incredibly,
over two thirds of the decline in inventory
was from the JPMorgan Chase warehouse.
Its reported gold stockpile dropped
by over 1.2 million ounces, equal to
a hefty $1.8 billion worth of physical
gold. This is just in the 120 days,
the decline having started a little
early at The Morgue. The Scotia Mocatta
gold stockpile removals were nominal
in size when compared to JPM's, but
amounted to 650 thousand ounces in the
last 90 days, worth over $1 billion.
See the Gold Trends article (CLICK HERE)
and the Bull Market Thinking article
(CLICK HERE).

◄$$$ THE END OF PAPER REIGN OVER GOLD, THAT IS THE MESSAGE FROM C.N.B.C.
IN A SURPRISE EPISODE FROM THE IRREPRESSIBLE
ONE, THE GREAT SANTELLI. $$$

Rick Santelli at CNBC is a permitted detractor of sterling integity and sparkling
personality, loaded with color. The
biased financial news show prefers to
maintain on staff at least one heckler
critic of the system. It is a miracle
he has not been run over by an unmarked
black SUV with USGovt license plates.
Santelli frequently offers a tirade
about price inflation mock statistics,
or about the twisted priorities of a
USEconomy devoted to consumption, or
about the vicious absence of justice
toward the MF-Global private brokerage
accounts. He has been focusing more
often on the Gold market, offering some
insights, and giving it adverse publicity.
He pointed out the big difference between
the physical bullion they are buying
and the perverted gold contracts being
traded currently in the visible market
given great attention.

Rick Santelli said, "I do not even look at Gold as gold anymore since
they securitized it. If things went
badly in the world that I used to observe
(as a gold bug), the gold would end
up in the hands of the gold bugs. If
things go badly now, they are going
to end up with checks from Exchange
Traded Funds! Sorry, it is not the
same. The reign of paper gold as the
Ayn Rand endgame, to me, that is over.
Game, Set, Match!" A big wow!!
By securitizing gold, Santelli means
the conversion to a paper contract,
either a gold futures contract or a
gold certificate (bank promise) or a
GLD stock fund share from the infamous
ETFund. He comprehends the sham and
fraud behind the paper gold arranged
by the SPDR Gold Trust, aka the GLD
fund. It is nothing but a bullion central
bank funded by naive gullible sappy
investors who make their inventory available
for the big US banks to raid and to
dump on the market in price suppression
drills. The CNBC control room did not
cut him off, or censure him, or fire
him. He continues to ply his trade from
the Chicago pits, as fiery and animated as ever. The
hypocrisy of the gold market is made
more evident by the grand accumulation
going on by Eastern central banks, who
remain aggressive in pursuit of the
precious metal. See the Zero Hedge article
which includes the Santelli rant (CLICK
HERE).

◄$$$ CYPRUS IS BEING ORDERED TO SELL 400 MILLION EUROS WORTH OF GOLD BULLION
FROM ITS CENTRAL BANK TO FRANCE IN ORDER
TO REMAIN EUROPEAN VASSALS. THE COST
OF MEMBERSHIP IS STEEP TO BECOME A EUROPEAN
DEBT SLAVE. THE BENEFITS FOR CYPRUS HAVE BEEN NIL. THE COST HAS BEEN RIDICULOUSLY
HIGH. CYPRUS
REMAINS THE MODEL TO BE USED ELSEWHERE
IN WESTERN NATIONS. $$$

The story line reads that Cyprus will sell EUR 400 million
in Gold bullion in order to finance
part of the bailout deal. It comes to
10 metric tons. On the surface, it seems
like bloodletting of the victim tied
down by restraints. Ranked #61 among
nations for its gold holdings of 13.9
tons, tiny Cyprus
will forfeit much to remain a EU vassal,
the benefits for membership being debatable.
It is very expensive to remain in the
EU Club as a debt vassal, since it costs
the entire banking assets plus the gold
bullion. One must question the sanity
and corruption of Cyprus officials. They are trading their precious
gold for the dubious opportunity to
remain a vassal state to the Eurozone,
when basic default is an option. Euro
Central Bank head Mario Draghi insists
that the Cyprus
gold held in the central bank must be
used to cover the losses sustained by
the raft of emergency loans to commercial
banks. The bankers up north seem like
heartless vampire criminal gangsters.
The decision should have been made to
default on the loans, no advantage seen
in continuing. One must wonder what
a default would look like, for full
comprehension of the situation. They
cling to the Euro like handcuff shackles
with intravenous blood removal devices
attached. See the Bloomberg article
(CLICK HERE)
and the Zero Hedge article (CLICK HERE).
It is not clear or confirmed that Cyprus has indeed forfeited its gold to the open
market.

The criminal actions seem like a theater of the absurd mixed with mafia raids
in broad daylight thefts. Creditors
are in the process of seizing Cyprus gold reserves. The process began with grabs
of the savings and bank deposits in
Laiki and the Bank of Cyprus, including
the working funds of the Univ Cyprus.
They did not spare the thousands of
small firms barely scraping along. Then
they seize three quarters of the island
nation's gold reserves, making it impossible
for Cyprus to extricate itself from the common Euro
cage. The people of Cyprus
are not even informed of events, the
victims of ongoing virtual information
blackouts. The gold seizure was first
learned from a Reuters leak out of a
Eurogroup meeting. The revelation seemed
to catch even the central bank by surprise.
The natives of Cyprus
are learning the hard way what it means
to be a prisoner in the monetary war
to preserve the power center. See the
UK Telegraph article (CLICK HERE).

## GOLD PRICE DIVERGENCE

◄$$$ THE PRICE DIVERGENCE IS WIDENING IN A BIG WAY BETWEEN PAPER GOLD
AND METAL GOLD, AS THE JACKASS FORECASTED.
THE DIVERGENCE IS A DEFINITIVE END GAME
SIGNAL. THE POINT HAS BEEN APPROACHED
WHERE THE GOLD PRICE IS MUCH HIGHER,
AND COULD HAVE NO PRICE ATTACHED. ON
FRIDAY APRIL 12TH, AROUND $20 BILLION
IN PAPER GOLD WAS SOLD SHORT SUDDENLY
IN TWO VERY POWERFUL WAVES WHERE NO
METAL CHANGED HANDS. A MAJOR LONDON GOLD DEFAULT ALMOST OCCURRED, WHICH MOTIVATED THE ATTACK. $$$

The gold paper architects and craftsmen have control of the publicized Gold
market. They do not have control of
the physical Gold market, and are actually
cutting their throats in accelerated
fashion. The Eastern players are grabbing
at the opportunity to secure gold bars
at any price, wherever it is available.
The global cupboards are turning bare.
Tiberius reports that Russia
& China
have been very heavy buyers after the
price dip through their central banks.
See the Red Lion Trader article (CLICK
HERE).
The victims are those naive and reckless
investors who insist on remaining in
the leveraged paper gold arena (ignored
MF-Global warning), and the unfortunate
few who depend upon small gold sales
to fund household expenses and specific
projects. The scale of the selloff was
incredible, only to accelerate on Monday
April 15th for a climax event timed
exactly with the income tax deadline
in the United
States. No coincidences
occur in this great game of global fascist
chess. Later in April are featured certain
dire dates on the satanic calendar to
celebrate fire. Sentiment has been poor
for weeks and the report (so far rumor)
regarding forced Cyprus
gold reserve sales led to further weakness
leading into the Friday 12th date. However,
the insecurity of bank account assets,
the poor economic data in numerous nations
where additional stimulus will be
required (monetary debasement),
and continued desperate central bank
bond monetization (no buyers) would
justify a much stronger Gold price.
Thus the motive to slam the paper gold
market where control is brutal, criminal,
and obvious.

Reports suggest that a futures sell order worth $6 billion,
equal to 4 million ounces or 124.4 tonnes
of gold, by a large investment bank
sent prices plummeting and led to waves
of more forced sell orders, contributing
to the powerful decline. The order was
believed to have been placed by Merrill
Lynch, the same offices that pitched on $8 trillion in Interest Rate Swaps to aid
the flailing USTreasury Bond market
in the second half of 2010. The gold
futures market then saw a further wave
of follow-on selling of contracts worth
around $15 billion coming rapidly in
just 35 minutes, equivalent to 10 million
ounces or 300 metric tons. The name
ambush assault is not sufficient. It
was an orchestrated artillery event
of a civilian village. The press fails
to report properly, not on the naked
shorting element, and not on the leverage
potential. Investment banks and hedge
funds can manipulate the (paper) futures
gold price in whichever direction they
want on a given day, using the massive
20:1 leverage. It was utilized and plainly
evident on Friday the 12th. Gold futures
tied to over 400 tonnes were sold in
hours, an amount equal to 15% of annual
global gold mine production, a total
farce and blemish to a supposed free
market. It is a rigged corrupt market
to the extreme. The scale of the selling
was massive and emphasizes how one or
two large banks can completely distort
the market by aggressive concentrated
leveraged short positions. Their actions
are protected, even colluded with, by
the USGovt and UKGovt. See the GoldSeek
article (CLICK HERE).

Motive has been outlined in broad but vivid terms. An imminent default in
London required the gold market smash, so claimed Andrew Maguire.
The ABN Amro gold default tipped off
the big ambush event. The Jackass expected
something big, but in no way could put
a finger on exactly what. The bankers
urgently needed to forestall a default
in the London physical market after a run on metal and
a refusal to deliver. Clients have been
frustrated in receiving gold bar delivery
under contract. With the ambush assault,
confusion took over, smoke filled the
loading ramps, and more supply appeared
from victims stopped out with margin
calls. The game is beyond corrupt, having
turned deeply criminal and diabolical.
See the King World News article with
interview (CLICK HERE).
The fiendish satanic element is uncovered
when certain late April dates occur
repeatedly.

◄$$$ PREMIUMS FOR GOLD PURCHASES WILL RISE QUICKLY. THE PROCESS HAS ALREADY
BEGUN. THE GOLD PREMIUM WILL EVENTUALLY
BE $500 TO $600 PER OZ, LIKE IN A COUPLE
MONTHS, MAYBE A LITTLE LONGER. THE DIVERGENCE
WILL BE VISIBLE IN REALTIME FOR GOLD,
BUT FOR SILVER IT IS ALREADY 40%. PUBLIC
DEFIANCE
WILL RISE AGAINST THE BANKERS, LIKE
WITH PREMIUMS IMPOSED. WATCH FOR LAWSUITS
RELATED TO THE ALLOCATED GOLD ACCOUNTS.
WATCH THE BAFIN INVESTIGATION AGAINST
DEUTSCHE BANK, WHERE OFFICIALS ARE SIGNING
IN A CHORUS. $$$

My excellent reliable gold trader source, The Voice, offered some direct accounts.
He has a colleague with connection to
the gold trade in Dubai United Arab
Emirates, who has offered to provide
an important update on the DBX gold
price. My hope is to be updated almost
daily, but that is asking too much.
The premium reading is like an EKG
for a man suffering a heart attack with
monitors attached. He passed along
notes on Friday and again on Saturday,
shooting updates. He wrote, "No
more physical Au available in Dubai. The big refineries tell people they might
be able to fill orders for 100 kg bars
in a week or two, but they might not
be bound to the screen price. Premium
now $18 over spot Gold price and rising
(on Friday). We shall see $500 over
spot not before long. Investment grade
Ag is already trading at 40% over spot
if you want physical in volume. Saturday
here in DXB and the premium is now $25.
There is no physical anywhere. Now the
premium is $30 (one hour later)."
For newbies, Au means Gold and Ag means
Silver. Some simple math permits
one to conclude that a $500 premium
could arrive in fifty days if it comes
at $10 per day. My belief is that the
full premium will come more quickly,
as the jumps will tend not to be linear.
The traders in control of scarce inventory
will sense the injustice and smell the
destination of a true valid Gold price!!

The defiance against the criminal power jockey bankers will be visible in the
open very soon, with public statements
and calls for lawsuits and prosecution.
Worse, the events and premium rise will
be accompanied by direct formal action
taken against thefts of Allocated Gold
Accounts. Watch the German story, since
the political response by their Parliament
has begun for repatriation of their
national account held (sold) by the
New York Fed. The latest chink in the
armor is a BAFIN investigation against
Deutsche Bank in Germany. Several high level officials wish to
avoid prison time, which motivates them
to sing in a chorus tune. They are providing
information on the $79 trillion in D-Bank
derivatives, which permitted them to
do illicit balance sheet extensions
in the past. It is all tied to gold
and the malfeasance behind the gold
account management.

◄$$$ THE CURRENT PRICE DIVERGENCE IS ABOUT 40% BETWEEN THE STATED OFFICIAL
RIGGED PAPER PRICE AND THE OPERATING
ACTUAL PHYSICAL METAL PRICE. THE WIDE
GAPING SPREAD FROM PAPER TO METAL APPLIES
TO BOTH GOLD AND SILVER. $$$

An interesting snapshot for Silver was provided by Jason Hamlin, in a field
report. See the Kitco article (CLICK
HERE). He compared Tulving,
APMEX, and e-Bay, thereby coming to
the conclusion that where Silver coins
were available, the price premium over
the corrupt COMEX price is either 37%
or 43%. The spread on metal versus paper
precious metal prices is consistent
at 40%. Do not bemoan the COMEX lower
price. Ignore it, since no supply is
available at that price. In a not too
gradual process, the Western nations
will ignore the official Gold &
Silver prices as meaningless. When no
supply is in the store for puchase,
the price might as well not be posted
since it does not apply and has no meaning.

It is difficult to verify further, but my source The Voice reports the actual
Gold price for large volume authenticated
Gold bar purchase is at least $2000
per oz, with no detectable change
oberved in the last week. The price
applies in several corners of the world.
He bases the perception on direct knowledge
at certain locations, and anecdotal
accounts from other locations. Simple
arithmetic comparing $1400 with $2000
bears a 43% spread for Gold. Another
client located in Dubai UAE offered
the report. "There is no more
physical Au available in Dubai.
The big refineries tell people they
might be able to fill orders for 100
kg in a week or two. The premium is
now $18 over spot Au and rising quickly.
I fully expect that we shall see $500
over spot not before long. Investment
grade Ag is already trading at 40% over
spot if you want physical bars."
The magic number is 40% on the spread.
Some brief communication was made with
James Turk of Gold Money. He said their
demands are smallfry, in his words.
He has had no trouble in securing supply,
even at the absurdly low price. But
rare are Gold Money orders much greater
than $1 million. Turk mentioned hearing
that bigger players have indeed experienced
problems with supply.

◄$$$ BARNHARDT ADDED INSIGHT ON DYNAMICS FOR THE DIVERGENCE AND DISINTEGRATION
IN THE GOLD MARKET, WHICH SIGNALS AN
IMMINENT PARABOLIC PRICE SPIKE EVENT
AFTER AN IMPORTANT DE-COUPLE EVENT.
SHE EXPECTS THE PAPER GOLD PRICE IN
THE FUTURES ARENA TO BE IGNORED, AND
NOT SUBJECTED TO ARBITRAGE, SINCE NO
SUPPLY EXISTS IN HIGH VOLUME. HER VIEWPOINT
IS SPOT ON, SINCE MY BEST SOURCE GOLD
TRADER REPORTS ABSOLUTELY NO CHANGE
WHATSOEVER IN THE GOLD PRICE FOR LARGE
PHYSICAL BLOCKS IN AUTHENTICATED GOLD,
ZERO CHANGE!! $$$

Ann Barnhardt should require no introduction. She is the leading critic of the
dynamics behind the MF-Global client
account theft and its implications for
the futures markets generally. As in
lost trust, abandonment, and rotting
on the vine from neglect, since hundreds
of professional firms banned participation
from rules at their compliance departments.
She pitched in with a brilliant explanation
of the practical effect extending from
the corrupted gold market price manipulation
obscenity. A GREAT DE-COUPLE EVENT
IS COMING, SINCE THE LINCHPIN IS MISSING
THAT TIES METAL DELIVERY POTENTIAL TO
THE PAPER DISCOVERY PRICE. The COMEX
futures contract will separate from
the real world, since no inventory available
at the lower price means no delivery
from contracts can take place on the
loading ramps. Thus the separation of
the COMEX from the real world, and its
fantasy world will detach and become
isolated. Barnhardt describes the
disintegration of the gold market from
its price discovery basis at the COMEX,
which no longer reveals price where
metal is accessible and associated with
a contract for delivery. The gold
market isolation is a precursor to the
bigger main event, the isolation of
the USDollar.

The futures gold price will soon be ignored as unreliable, whose price is meaningless
since no inventory is available for
delivery at the posted prices. Arbitrage
will not be viable, and will not happen.
Any arbitrage potential would be realized
if gold bars could be bought at the
cheap price from futures contracts,
then sold in Asia for instance at the
much higher price. A great drain
would occur, but it is not possible
since supply is not available in New York, a grand disconnect. No arbitrage because no cheap metal is
available, period!! The past MF-Global
occurrence will accelerate the lost
faith and trust in the COMEX, where
it lost huge integrity. The divergence
between the metal price and the futures
(paper) price will grow much wider,
the dynamic described for the growing
divergence forecasted by the Jackass.
The physical (metal) price will remain
firm, as it ignores the corrupted futures
price that bears no reality to the discovery
system. My best contact The Voice reports
that NO PRICE CHANGE HAS OCCURRED AT
ALL IN THE LARGE VOLUME GOLD MARTS ACROSS
THE KEY CENTERS OF THE WORLD, ZERO PRICE
CHANGE ON THE PHYSICAL SIDE. The de-coupling
phenomenon might have already occurred
for very large volume transactions.
The de-coupling effect will take time
for the smaller transactions.

Barnhardt wrote the following. "Finally, a very simplistic explanation
of how the cash commodity markets are
soon going to decouple from the futures
markets. This is a little complex, but
stay with me. I think this is important
to understand because none of us who
have lived our whole lives in the United States have ever seen
a market disintegrate. The threat
(or promise) of delivery upon expiration
is what keeps the futures markets tethered
to the cash markets. Up until now,
if an unreasonably wide spread between
the futures price and the underlying
physical commodity market got too out
of whack, a process called arbitrage
would kick in. Arbitrage takes place
when a party simultaneously buys and
sells on two separate but related markets
in order to capture an inefficient spread
between those two markets.

The
linchpin that is holding this
dynamic together and keeping the futures
markets tied to the underlying cash
market is the fact that the futures
contracts are deliverable, and a
trader can either deliver or take delivery
of actual physical silver via his futures
position. The futures markets have
lost their viability and trustworthiness
because of the MF-Global collapse and
theft. At some point in the not-too-distant
future, people everywhere are going
to realize that the delivery mechanism
is not reliable. Heck, just holding
cash and/or positions in a futures account
is no longer reliable. If the market
itself is not reliable, traders will
no longer attempt to arbitrage these
basis spreads because the risk to
the trader that the rug will be pulled
out from underneath them is simply too
great.

When
the arbitrageurs finally lose all confidence
in the markets, the cash market will
de-couple from the futures because no
one will be willing to take the risk
of having their money, positions and/or
physical metals stolen and confiscated. If no arbitrageurs are willing to trade these spreads, no matter how wide they
may become, and thus there is no force
causing the cash and futures to converge,
we will see the basis spreads become
extremely wide. As people flee the
futures markets, the futures prices
will drop, while the cash markets hold
steady or even diverge and actually
rise as all of the former paper players
realize that physicals are the only
remaining game to be played.

Watch
for this. Watch for the Gold & Silver
futures to sell off as people walk away
from paper while the online cash
dealers, seeing that market demand for
their physical inventory is robust,
begin to ignore the futures prices and
hold their prices steady or even raise
them. When you see this basis de-coupling
and absence of arbitrage, lo, the end
is nigh. A parabolic spike is coming." Hats off to Barnhardt for the practical lesson in markets, psychology, and
reaction to criminal activity. They
dynamics on the de-coupling process
are tricky. Some critics argue that
the lower COMEX gold price must be real
because arbitrage would close the gap.
They are wrong. No supply is available
at the COMEX low price, which will result
in the COMEX being ignored.

◄$$$ PRICE HAS DIVERGED FROM DEMAND IN TOTAL WRONG FASHION TO DISPLAY
THE BROKEN CORRUPT MARKET. THE ACTION
IN THE LAST TWO WEEKS ONLY AGGRAVATED
THE SITUATION AND DISTORTION. $$$

The physical demand for USMint coins is not all inclusive, but it is a very
indicator of the broader investment
demand, the desire to own tangible precious
metal. The investment demand has in
every single major bull market been
the driving force to bust the dam wide
open and cause an historical price breakout,
a reliable factor evident over the ages.
The USMint demand is growing at 80%
to 100% per year, yet the price has
declined. The price mechanism is corrupt,
to be manifested clearly in empty inventory
and contract defaults. The process
has been at work to display market shortage
for over a year in stark terms. The
divergence between demand and price
effect is proof positive of the corrupted
market. See the Gold price versus gold
coin demand. Do not be confused by the
chart. The coin demand is linear upwards,
a cumulative data series. Each month
the data point rises by the next month's
demand. If price had fallen from a lapse
in demand, the green series would have
tapered off and flattened out. It did
not.

According to the daily data from the USMint, a record 63 thousand ounces, an
impressive two tons worth of gold coins
were reported sold on April 17th alone.
The previous two days saw demand reach
96.5 thousand ounces. The accelerated
sales bring the total sales for the
month to a whopping 147 thousand ounces,
greater than the March and February
months combined. The month of April
still has almost half the month remaining.
See the Zero Hedge article (CLICK HERE).
So heightened demand, shortage of supply,
yet falling price, thus corrupted broken
market.

The same phenomenon is evident for the Silver market. The price decline came
in the face of constant strong coin
demand from the USMint. Again the mostly
linear rise in demand on a cumulative
basis means that each month a strong
steady demand is seen from customers,
without a gap to cause a price swoon.
Notice the correlation between the gold
and silver demand series, but no tight
link as each varies. The silver coins
have seen much more growth in recent
months.

## HALTED MINE PROJECT SUPPLY

◄$$$ A WHOPPING 10% OF US-BASED SILVER MINE OUTPUT HAS BEEN BURIED BY
A LANDSLIDE IN UTAH AT THE KENNECOTT MINE. THE COMPANY TELLS THAT IT MIGHT NOT RESUME
PRODUCTION FOR AT LEAST A FULL YEAR.
THE LIKELIHOOD OF FORCE MAJEURE IN SATISFYING
OUTSTANDING GOLD & SILVER FUTURES
CONTRACTS JUST WENT UP. $$$

Rio Tinto operates the giant Kennecott mine in Utah, the
second largest US silver mine and world's
largest copper mine. In recent weeks,
it suffered a massive landslide which
will likely shut down production at
the mine for at least a year. The event
is assumed to be natural in cause and
origin. Incredibly, over one billion
tons of dirt mixed with ore have collapsed
into the basin of operations. The Kennecott
mine is responsible (rough figures)
for 3.2 million ounces of annual silver
supply and 379,000 ounces of annual
gold supply. It has just vanished from
the landslide, or at least has been
severely delayed for coming to market.
The annual US
silver mine output is 1050 metric tons,
equal to 33.6 million ounces. So about
9.5% of US silver supply has been cut
off. The silver supply shortages
had already been acute before the event.
See the Silver Doctor article (CLICK
HERE).
Another publication called it a 16%
cutoff in silver supply, so the data
might not be precise. The photo of the
site from a distant view resembles something
out of a science fiction movie.

Some hard data from the company website. As the second largest copper producer
in the United States, Kennecott produces
nearly 25% of US sourced copper. The
other Bingham Canyon Mine is a top producing
copper mine in the world with total
production of more than 19 million tons.
In 2011, Kennecott produced 237 thousand
tons of copper, 379 thousand troy ounces
of gold, 3.2 million troy ounces of
silver, 30 million pounds of molybdenum,
and other products. The landslide
event required the Boyz to double down
on the naked shorting toward the April
15th gold ambush. The next unintended
consequence from the COMEX price ambush
attack might be to devastate the profits
at the major mining firms, like Barrick,
their deviant psychopathic child. Further
removed supply coming to market could
occur as a result of lost profitability
by mining firms themselves. More food
for the force majeure feast.

The timing of the natural event is suspicious, and very difficult to imagine
any sabotage, but it is possible. Any
devious tampering on the property would
have to happen with company approval,
or else done in the dead of night undetected.
The Gold & Silver markets each suffered
major setbacks on the corrupted COMEX
futures paper market on Friday April
12th. The threat of force majeure is
growing more likely by the day for contract
forgiveness and cash settlement in the
dustup. The marekt reaction should have
been a massive upleg in the Silver price,
but it was smothered by tons of paper
gold and paper silver in New
York, a different kind of mudslide.
To be sure, the courts will consider
the event an act of God, but my preference
is to call it an act of the gods, the
same entities the Lord Blankfein worships
when he claims to do god's work in the
South Manhattan
financial temples. He and his evil ilk
point down during rituals, not up. They
appeal to the prince of darkness, not
the prince of light.

The the list of potential perpetrators is endless, if indeed foul play was involved.
It could be White Dragons to kill JPMorgan
in a broad stroke to force a COMEX shutdown.
It could be the Russians as vengeance
for the nasty Cyprus bank confiscations.
It could be AE1000 engineers who are
angry over 911, wanting to prove they
can do demolitions also. It could be
MF-Global victims as vengeance for stolen
silver delivery. It could be the PIMCO
officers as vengeance for being lied
to on inside information regarding USTBonds.
It could be Univ Texas endowment fund managers, who want their $1 billion in gold bullion
being denied by the New York Fed. It
could be Occupy Wall Street leaders,
angry over being painted as terrorists
by the financial terrorists. It could
be Bill Clinton & Bob
Rubin, who might have bought a boatload
of silver bars to accompany their stolen
gold bars from Fort
Knox. It could
be North Koreans, but that is doubtful
since they could not find their genitalia
in the dark. It could be the Alien Tribe,
who want vengeance for the USMilitary
attack on their large installation on
the dark side of the moon (whose facilities
Neil Armstrong observed, along with
hovering spacecrafts). On the other
side of the table, maybe the massive
landslide was caused by the Boyz in
Black from the criminal banker syndicate
in order to preserve their future supply.
They might not want all that valuable
supply (grossly underpriced after all)
to go to the wrong hands. Maybe it was
done by the USMilitary to prevent its
sale to filthy foreigners. Maybe it
was done by the owners of the enormous
number of precious metals forward sale
contracts, in order to ensure the supply
is kept in the right hands after some
planned future force majeure events.

◄$$$ BARRICK GOLD MUST BE PUT ON DEATH WATCH, MORE LIKE URGENT DEATH WATCH.
ITS STOCK SHARE PRICE HAS DECLINED DRAMATICALLY
BY 38% IN THE LAST THREE WEEKS. THE
RESEMBLANCE TO LEHMAN BROTHERS IS STARK,
WITH A BIG STOCK PRICE SWOON ACCOMPANIED
BY A STRONG SURGE IN THE DEATH INSURANCE
POLICY. ITS C.D.SWAP HAS RISEN FAR MORE
THAN LEHMAN'S DID BACK FIVE YEARS AGO.
$$$

First review the historical chart over the last 25 years to see a critical juncture
in the breakdown. Volatility has increased,
as momentum has given the downward thrust
a grave look. Point A was the the time
related to hope and betrayal during
the 2009 secondary stock issuance, where
they raised cash to cover the deadly
hedge book. The entire episode played
out in two parts. They lied and only
covered a small portion, just like in
2007, painting an image of deception
if not corruption. Point B is the present,
with a significant reduction in output
from the Pascua Lama project, amidst
legal challenges of a dire nation on
actual mineral right ownership. The
backdrop is a quick vanish in profit
margins and tough decisions over whether
to suspend other mine projects due to
unfavorable gold price in extreme market
conditions. Barrick Gold has found
itself in truly dire straits to ability
to service the massive debts associated
with development of the Pascua Lama
project. Bankruptcy might be discussed
as an option. A breakdown of the long-term
historical trendline seems assured,
given its momentum. Put Barrick Gold
on death watch, since the low gold price
and commitments to sell within the system
will drag them down like cement shoes
worn by a Mafia victim off the Sicilian
coast.

Next review the 6-month chart to reveal a powerful price decline. The Pascua
Lama project on the border of Argentina and Chile is gigantic, with huge investment and expected
massive flow of mine output. The threat
of its loss changes the entire dynamics
of the company, much like cutting the
aorta artery or jugular vein. The local
disputes are damaging enough. The court
challenge could cripple the firm permanently.
The price decline from the 29 range
to under 20 per share is significant
to the extreme, and reminiscent of the
Lehman Brothers fall into oblivion,
even Fannie Mae's fall. The decline
occurred with the telltale heavy volume.
If profitability in its remaining mines
goes away, as is expected, then removed
profit potential could send the ABX
stock into single digits quickly. The
corrupt defense of the USDollar and
big banks could ironically result in
the death of the favorite mining firm
Bitch Boy under firm control by the
Wall Street bankers. The CDS almost
never lies.

Finally, the confirmation of the death watch call. The Barrick Gold credit default
swap contract has zoomed upward. Just
like in summer 2008, when the Jackass
identified the Lehman Brothers CDS contract
rose by 30%, so has the Barrick CDS
in a loud shrill warning of death.
Except the Barrick zoom upward is over
80% since the last months of year 2012.
This is a loud continuous bell gong
of death watch. Barrick will serve as
the bellwether stock for the entire
mining industry, since it contains all
the problems, plus the massive hedge
book that never went away. Barrick is
actually the most vile in the niche
sector, due to its origins with the
bankers. Its executive staff is full
of bankers, even key political figures,
not engineers and geologists. Its second
Board of Directors included Brian Mulroney,
the prime minister of Canada
in the 1980 decade. Its second Board
of Directors used to include Papa Bush,
a sign of involvement in USDollar management,
if not some intermingling with narcotics
vines. During the 1990 decade and 2000
decade, the hedge book was a powerful
weapon used against the gold market.
It backfired. With the gold market ambush
assault on price, the profit margin
for Barrick was blown away. The only
corners to possibly offer capital to
sustain the firm are the big Wall Street
banks, the narcotics traffickers, and
the USDept Treasury. Great intrigue
comes. Thanks to EuroRaj, my client
in Europe with Indian connections, for
Barrick mining information and its CDS
chart, as well as a steady stream of
meaty articles about India
and Turkey
related to the gold market.

◄$$$ PUT THE VOLUMES INTO PERSPECTIVE. HISTORY IS BEING MADE IN THE ANNALS
OF BUSINESS CORRUPTION. BARRICK GOLD
MISLED INVESTORS ON THE 2009 SECONDARY
STOCK ISSUANCE TO REMOVE FORWARD HEDGES
(TWICE SINCE FIRST WAS IDENTICAL IN
2007). INSTEAD THEY USED THE FUNDS TO
EMBARK ON PASCUA LAMA ON THE ARGENTINE
BORDER. THE PROJECT IS BADLY STALLED.
THE VOLUME OUTPUT FOR PASCUA LAMA IS
OVERWHELMED BY THE CORRUPT SLAM WITH
FUTURES CONTRACTS ON THE TWO DAYS. $$$

Barrick Gold acquired the deposit at Pascua Lama on the western Argentine border
with its acquisition of Lac Minerals
in 1993. It has committed to invest
close to $3 billion in the project,
which had a planned lifetime of at least
20 years. Halt the trucks! The Barrick
property has finally come under extreme
scrutiny concerning its actual mineral
rights ownership, a story exposed by
the Hat Trick Letter a few months ago.
Some German interests have come forward.
The reserves in the balance are nearly
18 million ounces of Gold and almost
700 million ounces of Silver. Work on
the truly gigantic mine completely ceased
on April 10th. It would have produced
about 800,000 to 850,000 ounces of gold
a year, scheduled to start full swing
in 2014. The precious metals output
will not flow onto the COMEX market,
where exchange officials are best friends
with the company executives. See the
Market Watch article (CLICK HERE).

The entire Pascua Lama project was supposed to have produced
25 tons of gold per year, with a total
lifetime production of around 500 tons.
With over 500 tons of paper gold dumped
on the gold market on April 12th and
15th alone, the Barrick hedges toward
forward sales have effectively been
removed, quickly turned naked. If a foreign party like Saudi
Arabia or Hong
Kong had been promised the gold, it
is panic time. The loss from the interrupted
Pascua Lama production will result in
a powerful squeeze very soon. It will
be revealed in time. If they have committed
the output, either to COMEX channels
or to foreign parties, the supply will
have to be replaced in compensation.
As footnote, back in 2009, Barrick Gold
announced they were raising utterly
huge funds to buy back their disastrous
forward hedges. The news made quite
the fanfare. They lied, as reported
by the Hat Trick Letter at the time,
their second straight such lie, since
the identical fraud misrepresentation
occurred in 2007 when they bought back
only one third of what they promised
in the prospectus. Instead after the
2009 congame, they used the funds toward
the Pascua Lama project in a disastrous
backfire.

Take a walk back in a tainted memory lane. Barrick Gold issued the largest stock
offering in Canadian history during
2009, when it issued a $3 billion dollar
equity offering, which was increased
the following day to $3.5 billion in
response to market demand. Revenue from
the offering (109 million shares brokered
by underwritten by JPMorgan, Morgan
Stanley, Royal Bank of Canada,
and ScotiaBank) was listed in the prospectus
to eliminate the company's gold hedges.
The wrecking ball hedges had locked
in their future production of gold at
current market prices, all deeply underwater
with multi-$billion losses stacked.
The firm for years has been unable to
sell gold at high market prices. The
firm is so large as to be inefficient,
yet so corrupt and dumb as to sell current
output at low past prices. The big bumbling
bungler firm has not been in a position
to exploit high gold prices for years.
Now their biggest gold output mine project
is stalled off track, embroiled in controversy.

◄$$$ WITH PASCUA-LAMA AND KENNECOTT MINE PROJECTS SEVERELY CUT BACK IF
NOT HALTED, THE SUPPLY TO C.O.M.E.X.
FROM THEIR FRIENDLY MAJOR FIRMS COULD
QUICKLY CAUSE A DEFAULT SEIZURE EVENT.
$$$

After Pascua-Lama (major blow suffered by Barrick Gold), the Kennecott shutdown
could guarantee the shutdown of the
COMEX. The company officials think it
might take as long as two years to dig
out, claimed a heavy haul truck driver
at the location in Utah. Engineers had warned of a slide, but all forecasts were for lesser
damage. The flow into the main pit zone
extended beyond the scenarios forecasted,
having a greater impact to bury the
heavy earth moving equipment below.
Personal accounts called the size of
the slide shocking. In the meantime,
all mining has been halted at Bingham Canyon where 163 thousand tons of
copper, 279 thousand ounces of gold,
and 9400 tons of molybdenum were mined
last year. The combined impact is truly
enormous, but most important, on the
margin the loss of supply is devastating.
It is unclear whether Rio Tinto had
devoted the US-based mine output to the US-based COMEX. Mine
output from the Pascua Lama project
clearly went to the COMEX delivery onramps,
since Barrick is closely linked with
all the corrupted core of Wall Street
and Bay
Street. The company American Barrick
was created in order to manage the USDollar
currency and to provide the physical
flow that supported the vast derivative
machinery (paper lubricant, not grease).
Its executives were bankers, not engineers.
The odds of a force majeur on contract
failures has just risen 10-fold.

◄$$$ A RIPE COMBINATION OF FORCE MAJEUR AND UNINTENDED CONSEQUENCES COMES,
PERHAPS PLANNED. THE BANKERS WISH TO
ESCAPE THE OBLIGATION TO DELIVERY GOLD
UNDER CONTRACT. A HOISTED PETARD OR
A SINISTER ENDGAME PLOT IS UNFOLDING,
TO BE SURE. HONEST CLIENTS WILL ABANDON
THE C.O.M.E.X. AND ADD MOMENTUM TO THE
SELLING. THEY SENSE NO DELIVERY POTENTIAL,
THUS NO FUNCTION IN THE EXCHANGE ITSELF.
$$$

Take a different angle look at the sequence of upcoming events, where the
goal might be to bring about a force
majeure in the gold market. The
bankers make the rules. They define
the event types. They orchestrate the
market slams. They write the news stories.
They pay off the USCongress with bribes.
They use the USDollar printing press
liberally to fund their own bailouts,
to extend truly mindboggling $23 trillion
loans to themselves, and to operate
the market control rooms for the FOREX
currencies and the USTreasury Bonds.
For reference, see the Exchange Stabilization
Fund which was discussed in more detail
in a recent Hat Trick Letter report.
But the bankers cannot force businesses
to sell at a loss, nor can they force
individuals to bring their wealth through
corrupt market doors. The perverse contract
forgiveness (force majeure) appears
to be the ultimate goal, especially
since the payout from margin losses
and produced gold metal has been miniscule.
Jon of Silver Doctors summarized the
apparent plot well, which has built
the roads leading to a force majeure.
It means the gold contracts for delivery
will be forgiven and washed away, settled
in cash, deemed the outcome of unforeseeable
events, even natural acts of God. No
provisions exist in contracts for acts
of Lucifer, more appropriately.

"The
COMEX will default in the next week
or several weeks and people will be
settled with USDollars, as no more metal
will be delivered! Knowing that Game
Over has arrived, they are dumping a
massive volume of paper contracts with
impunity to push the metals prices as
low as possible before the default.
This way the shorts do not have to and
will not be covered when supply cannot
be obtained because of an act of God.
They will be settled in cash (at a profit
no less) because of these unforeseen
disruptions in supply. 'WHO COULD HAVE
SEEN IT COMING?' will be the mantra.
I would suspect that banking stress
and Bail-ins will also become prevalent
globally. The pricing structure will
now push any and all physical sellers
away from the markets and the door to
safety is effectively being shut. Either
you own metal or you don't. After the
closure of the COMEX and LBMA doors,
there will be no [gold] availability
and [gold] price will be meaningless."
See the Silver Doctors article (CLICK HERE).
All true, but honest clients will
dump the same gold contracts also, knowing
that they do not contain a linkage to
gold delivery off a ramp. The bankers
have shut the COMEX down in function,
by revealing the disconnection between
price discovery on the contract side
and metal delivery on the street side.
Most financial news networks completely
miss this basic point, because they
do not wish to give emphasis to the
absent inventory. Doing so would highlight
the market corruption.

◄$$$ MOST LARGE MINING FIRMS WILL BE DEAD AT GOLD UNDER $1400 PER OZ.
A NASTY UNFOLDING SEQUENCE COULD DISCONTINUE
THE SUPPLY CHAIN AND TRIGGER THE ANTICIPATED
C.O.M.E.X. SHUTDOWN EVENT. THE WESTERN
MINING FIRMS WILL SEEK ALTERNATIVE BUYERS.
WATCH FOR EASTERN CENTRAL BANK RESPONSES,
WHICH COULD BE SHOCKS TO THE SYSTEM
IN A GOOD WAY. WATCH FOR MINING FIRMS
TO CHALLENGE THE BANKERS WHO RUN THE
SYSTEM, LIKE WITH OPEN DEBATE ON THEIR
CORRUPTION OR WITH COURT LAWSUITS. THE
POTENTIAL FOR DERIVATIVE ACCIDENTS JUST
ROSE 10-FOLD ALSO. $$$

Hinde Capital provided an excellent overview of the powerful pressures that
mining firms face. Their profit margins
just vanished, if they are obligated
to sell at the official screen price
on gold. A grand vicious cycle has shown
itself. The gold price ambush attack
has eliminated mining firm proifts.
But the cutoff of mine output supply
for Gold & Silver might fit into
their plans to bring about a force majeure.
Also, all those precious metals bars
will not go to market, for purchase
often by Asians. Details are compelling,
as mining company CEOs must face up
to reality. Costs are greater than revenue
at $1400 per oz gold. The industry recently
had an honest moment, to admit their
accounting has been faulty. The initial
cash costs might be $800 per oz but
the all-in costs are in the $1200 per
oz neighborhood, possibly higher. Selling
PM ingots at the current corrupted posted
COMEX price would lock in losses, assured
to grow in size. The headwinds are becoming
worse, as the central banks continue
their destructive monetary policies.
The commodity market reaction is
to re-price all items higher, thus firms
face higher operating costs over time.
The crude oil price has come down 10%
or more during the latest ambush sequence,
but the natural gas price is unchanged.
Natgas is the principal energy cost
item for mine operations, thus no quantum
reduction in costs. These big firms
are not in the business of losing money
after such enormous capital expenditures
for mine shafts & elevators, extraction
equipment, concentration mills, and
oversized trucks, not to mention building
roads and extending electricity and
natural gas lines often to remote areas.

The next event in sequence will be to wind down production.
Other firms might suggest warehousing
gold to restrict supply coming on to
the market, which could be done. It
would interrupt cash flow though. The
alternative solution not perceived by
Hinde is the diversion of supply. Alternative buyers are eager, like Sprott Asset Mgmt, the Central Exchange
Fund of Canada, numerous Sovereign Wealth
Funds, Middle East
royals, and the Asian buyers, all of
whom will all pay a more normal fair
price. The Russian and Chinese central
banks could send a redhot poker up the
US and London
banker hind parts with a publicly stated
offer to buy Western mine output. What
a shock it would be if the Turkish central
bank made such an offer, as part of
its trade trade finance intermediary
function that it aspires to fulfill.

The Kremlin and Beijing plans surely involve more aggressive acquisitions, already
seen. The Chinese will accelerate their
takeovers of mining firms, and go to
the source of gold supply more directly.
Savvy contact EuroRaj pointed out that
China might take over some of the
swap contracts tied to gold, provide
relief for mining firms, even put cash
on the table (in form of USTBonds),
while locking in contractual supply
of future mine output in Gold &
Silver, perhaps copper too. Look
for Australia
to be a ripe ground, since such deep
relations already exist there with China, like ownership of the
majority of port facilities. Asian
nations led by China will not tolerate a
$1400 gold price imposed by corrupt
forces, since it reduces the value of
their bank reserves and affects their
entire national economies. The gold
ambush attack is an act of economic
war in a sense. They will aggressively
react, and deepen the Monetary War to
focus more of Gold itself.See the Economic
Times of India article (CLICK HERE).

The accelerated pace of gold shipments eastward could receive a grand push by
the mining firms. Time will tell how
devoted they are to the Wall Street
and London master bankers. Inevitably, production will drop off as smaller
mining companies fold, unable to warehouse
output, without financial lifelines
to the big bankers. There are approximately
1000 mining companies on the TSX index
with less than C$200,000 in the treasury.
The most power that the big mining companies
have in order to try and survive this
debacle is to reduce production in a
prudent manner to preserve whatever
profits can be derived, and to stop
supplying the physical market. They
cannot effectively hedge against the
vagaries of the market, because the
market has betrayed them and does not
offer proper potential for the hedge
process. The corrupt bankers have turned
adversary to the mining firms at a time
when foreign governments have turned
hostile under the resource nationalism
banners. The big mining firms will
be forced to renegotiate the royalty
deals with indigenous governments, face
phony environmental obstacles, and contend
with confiscation threats. Watch
Barrick for a death event. Its stock
share price is down hard, but more importantly
its Credit Default Swap contract is
also up sharply.

Worse, the mining firms with insight will NOT wish to produce from their lowest
cost mines at a profit, since the offered
profit is absurdly low. They will either
mothball projects or find more suitable
buyers. The mining firms will not
squander their best assets, and serve
them as sacrifice at the banker altar.
Hinde expects withdrawals, saying "We
cannot produce gold profitably at these
levels. So we are stopping [operations]
and saving our prize reserves for another
cycle." Such reaction would
hasten the force majeur because the
COMEX would be more universally ignored
and shunned, sending their posted futures
price lower. The clientele would abandon,
knowing the COMEX had no gold supply,
resulting in massive sell orders as
they exit the doors. This is exactly
the COMEX vacant building syndrome described
by the Jackass for over two years. The
process is happening finally after long
wait. It took a drainage of inventory
over several months to bring events
to a climax. See the Hinde Capital article
(CLICK HERE).

Clients, including the mining firms, will choose not to be mugged at robbed
by the market manipulators. The mining
firms are caught in the crossfire. They
will seek alternative customers to supply
their output, for a more fair price.
It is a big world out there, and the
East is vocal about their demand. The
G-20 Meeting in Turkey next month could
be the site of important announcements,
possibly an offer to purchase Western
mining firm output at an honest price
(not at a premium, since the word assumes
the official price is equilibrium based).
We could see a string of mining firms
suddenly provide miserable forward guidance
of big ongoing losses, and order shutdowns
at signature project sites. They might
become vocal about the inequitable price
and possibly even address the corrupt
practices to set price at the COMEX.
They might file lawsuits in legal court
challenges against naked shorting of
gold futures contracts, citing US regulators
as accomplices. Unfortunately, some
of the biggest mining firms are neck
deep involved in the corrupt practices,
like forward selling in collusion to
keep the prices low, at banker directive.
The other fireworks are coming on the
derivative front with USTreasury Bonds
and major currencies tied to Gold. Everything
has been turned upside down suddenly.
The bankers kicked the table, and everything
moved.

## PRECIOUS METAL DEMAND STRONG

◄$$$ USMINT COIN DEMAND CONTINUES TO SET A RECORD PACE, TO PROVE THE C.O.M.E.X.
ACTIVITY A HIVE OF CORRUPTION LACED
WITH DECEPTION. THE PACE FOR SILVER
SALES IN 2013 IS ALREADY 14% HIGHER
THAN THE RECORD 2011 YEAR. BUT THE PACE
FOR GOLD SALES IN 2013 IS 14% BELOW
THE RECORD 2011 YEAR. THE SILVER CONSUMPTION
AT THE USMINT IS ON TRACK TO EXCEED
THE TOTAL US-MINE INDUSTRY OUTPUT BY
34%, AN ASTOUNDING DATA POINT INDICATIVE
OF POWERFUL OVERWHELMING IMPRESSIVE
DEMAND. $$$

The USMint coin sales for March are on pace to exhaust the entire domestic mine
output for Silver Eagle production.
The records are being set for silver,
but not for gold. Perhaps the investment
community comprehends the extreme deficit
globally for silver, or else prefer
the cheaper price per unit. The USMint
sales for silver and gold coins for
March can be seen for comparison to
see the record levels. Notice the cumulative
sales in the first three months, for
2013 versus 2011.

Standing out with the data is how silver eagle sales continue to be very strong
with 3,356,500 ounces sold in March.
This was the second largest amount ever
sold in March. The 2010 comparison for
silver coin sales must factor in that
three years ago, the price was 40% lower.
The strong year of 2011 will likely
be surpassed. In the United States, a total of 1050 tons of silver was
mined in 2012 (or 33.6 million ounces),
according to the US Geological Survey. If sales
maintain their pace toward 45 million
ounces of silver, the USMint will consume
the entire US
national mining output just to fabricate
Silver Eagles. It would be forced
to import an additional 350 tons of
silver (11.4 million ounces) to meet
Silver Eagle demand. Amidst the great
demand, the corrupt Silver price is
falling. The Wall Street bankers are
utterly desperate. The demand story
for Gold Eagles is nowhere as impressive,
although still strong. Watch for staggering
shortages to crop up. Investors should
buy whatever they find, and pay some
premiums.

Hebba Investors chief summarized the battle, and notices the divergence as the
Jackass forecasted. His views on the
divergence are keen. He wrote, "Investors
have had a rough year investing in Gold
& Silver, and the strange divergence
between the physical market and the
paper market continues. This is
an epic tug of war between investors,
but we believe that the physical end
will win as the physical and paper markets
continue to duke it out for two reasons.
First, physical silver investors
are much stickier [more stubborn and
dedicated] than paper investors
because the investor buying $50,000
worth of silver eagles is less likely
to sell if the price drops 2, 3, or
4 dollars, while the paper investors
can buy and sell on a whim. This is
essentially moving silver from weak
hands to strong hands and when the paper
investors come back into silver, the
market can reverse rather quickly. The
second reason we believe that the
physical investors will win the battle
is that the physical market is ultimately
what determines price when sales numbers
get high enough. As we mentioned,
if sales numbers continue then ALL of
the US mined silver will be used to
mint Silver Eagles. Large amounts of
silver will have to emerge from secondary
sources simply to meet Silver Eagle
demand. Paper markets can set the price
short-term but as other users of silver
find it harder to source the metal,
you may see some interesting things
happen in the paper market (and large
jumps in price) as paper contracts are
used as a way to deliver physical silver."
See the Seeking Alpha article (CLICK
HERE).
Paper contracts will soon be ignored.

◄$$$ CHINA'S FEBRUARY GOLD IMPORTS FROM HONG KONG ALMOST REACHED 100 METRIC TONS. THE EASTERN NATIONS ARE GATHERING
GOLD. THE WESTERN NATIONS ARE DISCHARGING
GOLD. THE HONG KONG WINDOW HAS BEEN
EXTREMELY BUSY FOR CHINA IN GOLD ACCUMULATION. $$$

China posted more remarkable gold trade
data. With Gold imports of 97,106 ounces,
against Gold exports of 36,159 ounces,
the Net Import of 60.9 tons was seen
for February, only from the Hong
Kong window. The past arguments of restitution
for fake tungsten bars, the hidden accounting
in Industrial Suppliers on the US
trade ledger, hence the big thumb
in the data points to a concealed payment
in Gold bars by the United
States to China.
They might be holding the USTreasury
Bonds as hostage. They might be
holding the full tungsten fraud story
in abeyance for a future date. The growth
rate is strong, up on imports from 51,303
tons in January, data from the Hong
Kong Census & Statistics Dept. See
the Sprott news memo (CLICK HERE).

Every month, the US Census Bureau releases the FT900 document, which outlines
US Intl Trade Data. A closer look reveals
that in December 2012, the United States exported over $4 billion worth of
gold and imported around $1.5 billion
worth of gold. The net export of
$2.5 billion from the US
to China
amounted to a ripe 50 tonnes of gold
bullion, in a single month. The
net gold flow from Hong Kong to China
hit a record high of 557.478 tonnes
in the full year 2012.

◄$$$ THE CHINESE WILL START IMPORTING GOLD FROM SWITZERLAND
TO SUPPLY THE HONG
KONG BASED GOLD & SILVER EXCHANGE.
A RUN ON GOLD IN CHINA HAS MANY SIDES, ALL GOOD FOR SUPPORTING
THE GOLD PRICE. $$$

Not many details to the story. The Chinese Gold & Silver Exchange Society
operating out of Hong
Kong is not new, having been in operations
for over a century. The exchange
president Haywood Cheung made a bold
comment. He warned that the parties
who orchestrated the attack on Gold
& Silver in the last week have gravely
miscalculated the consequences.
The local response to the price decline
has been surging demand for physical
precious metals. Their Exchange Society
has sold out of gold bullion, and must
wait for replenishment from Switzerland and London. See the Zero Hedge article (CLICK HERE).
Demand from Asia
will be relentless, until tremendous
tectonic shifts are completed within
the Paradigm Shift. The Swiss bankers
are soon to be forced to contend with
tremendous demand, as they will morph
into an unofficial gold exchange as
consequence. The COMEX & LBMA tagteam
have been revealed as unsafe arenas
where vipers lurk.

◄$$$ A MODERN GOLD REFINERY AND MINT IS COMING TO DUBAI WITH CAPACITY
TO PRODUCE 1400 TONS OF GOLD AND 600
TONS OF SILVER PER YEAR. DUBAI
WANTS TO GRAB THE BRISK ASIAN TRADE,
NOT TO BE HANDED ENTIRELY TO TURKEY. WATCH FOR THREATS AND ACTIONS BY THE USGOVT.
$$$

The United Arab Emirates has ambition. The Kaloti
Group is one of the world's largest
gold and precious metals refiners and
trading houses, full of integrity. Construction
will begin on a new $60 million gold
refinery in Dubai
(UAE). It will be located in the
Jumeirah Lakes Towers Free Zone, with
expected completion in late 2014. It
will constitute a major investment in
expanding and upgrading their refining
facilities, boasted to rival the best
in the world in state of the art technology.
It is designed to produce central bank
quality (99.99%) LBMA good delivery
bars. The city state of Dubai will be capable of meeting the growing international demand,
with capacity to meet growth. The
new refinery will have annual capacity
to produce up to 1400 tons of gold and
600 tons of silver. It will also operate
a mint for production of retail gold
ingots and coins. The expansion
will triple the size of Kaloti's current
refinery capacity. The technicians reported
that the new Kaloti refinery will employ
the latest gold electrolysis technology
from Italy
and Switzerland,
as well as the worldwide accepted aqua
regia process for gold refining. Last
month, the Kaloti Group announced a
deal to work with a South American nation
in order to build a gold smelting plant
in Suriname. The tiny nation in northeast South
America recently discovered some wealth
in gold. See the Arabian Business article
(CLICK HERE)
and the National Arab Emirate article
(CLICK HERE).
One must wonder if the US
will locate Islamic terrorists in Suriname next to root out.

Conclude the Asians and Africans, in addition to the Middle Easterners, can
go to Dubai (aka
DBX) for gold purchases rather than
to Switzerland
or to London.
Clearly, Dubai
wants part of the Asian action in brisk
gold trade. The table is being set for
the diverse Gold Trade Finance, with
intermediaries providing gold bullion
toward trade settlement.Turkey
and India
have been cited in the Hat Trick Letter
previously as likely to fill the role.
Add Dubai, which
is very different from Singapore. Dubai will withstand the Western threat over its cooperation with Iran
to become the new Switzerland
of the East. The thriving city state
of Dubai
contains Russians, Turks, Eastern Europeans,
British, Indians, and Asians who all
work there. Soon the Egyptians and Africans
will join in the great gold game, certain
to displace the paper congame from London
and New
York. The risk factor is sabotage by
the USGovt fascist bankers who feel
threatened. Many are the back doors
to Iran
and even to Asia.
Commerce and free trade will prevail,
but only after the climax event for
the collapse of the Anglo-American bank
ers.

◄$$$ HONG KONG FINANCIAL MARKETS EXPAND IN TRADING
AFTER HOURS. DUMPSTER DOORS ARE BEING
CONSTRUCTED FOR USAGE IN CONTROL OF
PRICE MOVEMENTS IN IMPORTANT MARKETS,
SUCH AS USTREASURY BONDS. $$$

The Hong Kong Exchanges & Clearing began in early April the trade in after-hours
for stock futures contracts. Later
will come after-hours HK trading futures
contracts in currency, interest rates,
and commodities. The designated
extended hours will run from 5pm to
11pm for standard contracts on the Hang
Seng Index (HSI) and the Hang Seng China
Enterprises Index. The extra session
will allow existing investors and commercial
firms to hedge and adjust positions
when news breaks in active European
hours overnight. The Shanghai Futures
Exchange also plans to add after-hours
trading in a bid to become a more global
marketplace. See the Bloomberg article
(CLICK HERE).
Consider the news to be fabulous and
encouraging. The Chinese are opening
more dumpster doors to confront the
deeply corrupted Anglo-American bankers.
The flow will include a steady stream
of USTreasury Bonds heading West from
no longer willing Eastern hands. The
Boyz in New York
and London will choke on the USTBonds coming home to
die. The Chinese vie to take control
of prices movements in critical markets,
in a very positive development. Expect
Hong Kong and Shanghai
to combat the Western financial centers,
and to target the USTBonds, Gold, and
even to some extent the Base Metals
using the HK LME link.

◄$$$ COMINVEST IS FAST REACHING THE PERMITTED LIMITS IN GERMANY WITH REDUCED VALUE ADDED TAX SALES FOR
SILVER COIN SALES. MANY COUNTRIES HAVE
ALREADY REACHED THE LIMIT ON SALES FOR
YEAR 2013. $$$

Cominvest is a large bullion trader in Germany.
Certain Value Added Tax limits must
be abided by in order to maintain the
business flow, which vary by European
nation. In Germany the limit is a low 7% VAT rate paid on
silver coins. Other nations must conform
to a much higher silver limit. Sales
are hitting the permitted limits quickly.
For the current year 2013, most countries
already have reached their limits for
shipping bullion and coin products from
Cominvest at German VAT rates. The year
is young. Sales can only be continued
to be shipped at these VAT rates in
the next fiscal year. They must wait
or find other venues to purchase in.
See the Coin Invest Direct article (CLICK
HERE) and
the VAT tax guide (CLICK HERE).

◄$$$ INDIANS ARE NOW TARGETING 25% PORTFOLIO ALLOCATION TO GOLD. DIFFERENT
FORMS OF GOLD INVESTMENTS ARE CATCHING
ON. THE ADVENT OF SMALL RETAIL BULLION
SHOPS IS SEEN ACROSS INDIAN CITIES.
$$$

Little known fact, but the gold Exchange Traded Fund concept was initially developed
in India. It caught fire in the United States, due to investor
laziness and mindless addiction to paper
vehicles. The Indian investors distinguish
themselves by harboring a psychology
that they require possession of their
metal instead of in certificate form.
Times are changing, mainly because an
enormous amount of physical possession
(primarily jewelry) has been the norm
for a long time. The marginal new investment
type is with ETFunds. The acceptance
and wisdom of investing in bullion,
gold coins, medallions, and bars is
better understood. They see the benefit
of good good resale value, easy liquidation,
and the hedge against inflation. The
nation is succumbing to price inflation
due to a persistent decline in the Rupee
currency. Nothing like currency weakness
to promote strong gold demand! Small
denominations of gold are in demand
from scattered new outlets across the
country like in Mumbai. The new wrinkle
is the retail bullion products like
coins and small bars. See the Bull Market
Thinking article (CLICK HERE).

◄$$$ INDIAN GOLD DEMAND IS RELENTLESS. IT HAS BEEN CAUTIOUS, AWAITING
A STABLE PRICE. WATCH IT RISE FAST AS
SOON AS THE CURRENT STEEP DISCOUNT SETTLES.
THEY ARE ALREADY FLOCKING TO RETAIL
STORES TO EXPLOIT THE DISCOUNTED PRICE,
AS THE WEST VOMITS ITS WEALTH. THE INDIANS
HAVE REACTED BY DOUBLING RETAIL DEMAND
LAST WEEK AFTER THE GOLD AMBUSH. $$$

Gold imports are likely to fall by 25% in April to around 53.25 tons compared
to the same month last year, the result
of a decline in gold prices. The Indians
chase gold as it rises, but are patient
when it falls, seeking bargains. In
April 2012, India imported about 71 tons
of gold. On an annual basis, India's gold imports had dipped by 12% in all
of 2012, down to 864.2 tons compared
to 986.3 tons in 2011, blamed largely
on a jewelry business strike over certain
budgetary measures, in addition to a
sharp rise in the domestic price after
a Rupee currency devaluation.

The national response in India to the steep gold price discount by the corrupt
paper hangers on Wall Street and in
London has been to buy aggressively, in a buying frenzy. The Indian population represents the largest end demand consumer in the world.
They do not follow the trends set by
the supposedly sophisticated American
public. No sophistication whatsoever
is evident in the US
financial crowd. They follow the stupidest
asset bubble trends put before them,
eagerly and to the end, then jump over
the cliff, on a repeated basis. Not
in India. The people of the vast
Indian subcontinent are doing precisely
what a buyer should do when the price
of the desired product plunges. They
are doubling down in a very literal
fashion. Bloomberg reported of the immediate
aftermath to the past few days, in response
to the absurd gold price plunge, "Gold
buyers in India,
the world's biggest consumer, are flocking
to stores to buy jewelry and coins,
betting a selloff that plunged bullion
to a two-year low may be overdone."
The lesson learned is that Indians comprehend
the gold market, since they are regular
traditional buyers of gold products,
not investors in the moronic GLD fund
offered as a substitute in a vast deception
by Wall Street shamans. Daughters of
Indian families are scurrying to buy
earrings at a discount. Men are buying
their mistresses bracelets. Those who
could not afford a few special gold
bars are jumping at the discount. See
the Zero Hedge article (CLICK HERE).

Gold buyers have jumped on the dramatic fall in Gold prices, picking up almost
15 tons in the three days from April
15th to 18th. They have doubled the
normal sales pace, exploiting the opportunity.
Jewelers say the trend is likely to
continue on Thursday, an auspicious
day in the Hindu calendar. The reaction
goes far beyond basic wedding demand.
It is a price reaction. See the Economic
Times of India article (CLICK HERE).

◄$$$ RUSSIA AND SOUTH AFRICA ARE WORKING TO CREATE AN OPEC-STYLE
PLATINUM CARTEL. ALTHOUGH NOT A MONETARY
METAL, PLATINUM IS IMPORTANT. ITS SECURE
EXCLUSION BY THE EASTERN B.R.I.C.S.
NATIONS IS INDICATIVE OF FLEXED POWER
ON THE GEOPOLITICAL STAGE. $$$

Russia and South Africa combine to control
about 80% of the world's reserves of
platinum group metals. They are forging
plans to create a trading bloc similar
to OPEC to control the flow of exports. They can talk about a desire for price stability, but the desire is for geopolitical
power. At the BRICS Summit in Durban
South Africa, the
Russian Natural Resources Minister Sergey
Donskoy made a bold statement when he
said, "The price depends on
the structure of the market, and we
will form the structure of the market."
South Africa produces about 70% of the world's
platinum, while Russia
leads in palladium, another member of
the so-called platinum group metals
(PGM). Russia
produces about 40% of global platinum
output, according to Johnson Matthey.
See the RT News article (CLICK HERE).

What an indescribable basket case Argentina is. Que pena! Demand
for gold is so strong in Argentina, that the only bank that trades gold
is looking to buy gold bars directly
from mining companies. They cannot obtain
it from the gold exchanges, because
their inventory is empty. Argentina is fighting the
highest inflation rate in the Western
hemisphere. They have the dumbest socialist
track record, having wrecked a model
economy from five decades ago. See the
Silver Doctors article (CLICK HERE).

## GAZPROM NATGAS LASSOO OF PETRO-DOLLAR

◄$$$ THE ERA OF BIG OIL IS UNDERGOING GREAT CHANGE. THE SEVEN SISTERS
USED TO CONTROL OVER 80% OF GLOBAL OIL
RESERVES. THEY NOW CONTROL ABOUT 10%
OF GLOBAL OIL. THE BATTLE
IS ON BETWEEN RUSSIA
AND THE WEST FOR CONTROL OF THE CAUCASUS
REGION AND THE WILD REMAINS OF THE AFRICAN
CONTINENT. THE NEWEST BATTLES PREVIEW
THE IMMINENT END TO THE PETRO-DOLLAR,
THE CONFLICT SURE TO ISOLATE THE USDOLLAR
BEFORE ITS WORLDWIDE REJECTION. $$$

A documentary series entitled "The Secret of the Seven Sisters"
is available and worthwhile to view
for an historical background. The global
balance of power is shifting East, partly
because the Sisters are not in unity
any longer, and their prized assets
have been depleted. They have turned
into fading old hags. The show reveals
how a secret pact formed a cartel that
once controlled the majority of global
oil. Since the discovery of crude
oil, the Seven Sisters have sought to
control the balance of power, even to
shape nations. They have supported
monarchies in Iran and Saudi Arabia, opposed the creation of OPEC, cooperated
with OPEC to form the compromise that
yielded the Petro-Dollar defacto standard,
and profited from the Iran-Iraq War
in the 1980 decade.

At the end of the 1960s, the Seven Sisters, the major oil companies in the West,
controlled 85% of the world's oil reserves.
Fast forward to today, when they control
just 10% of it. New hunting grounds
are therefore required for large discoveries.
The Sisters have turned their attention
towards Africa, where clashes have occurred
with China. After recognition of
peak oil, and the rise in crude oil
prices, Africa
has become the new battleground. Another
important region is the Caucasus of
West Asia, where the United
States and Russia
are in a battle for control of the region.
The nation that controls the Caucasus
and its roads, even pipelines, controls
the transport of oil from the Caspian Sea. The oil from Baku in Azerbaijan
is a strategic priority for all the
major companies. See the YouTube videos
(CLICK HERE,
HERE,
HERE).
The entire conflict over energy acquisition
and supply has made an important shift
toward natural gas, where Russia
and its Gazprom are not just dominant,
but powerful to the extreme. The Great
Bear of Russia is subjugating the Sisters,
starting with British Petroleum.

◄$$$ THE GREAT AMERICAN SHALE GAS PROJECT IS A BUBBLE ABOUT TO BURST,
SO CLAIMS THE GAZPROM CHIEF. THE WELLS
ARE ALMOST UNIFORMLY UNPROFITABLE. THE
PONZI SCHEME WILL BE REVEALED IN TIME.
THE REALITY WILL SPLASH WITH HARD DATA.
THE OHIO
STORY IS HARD TO DISTORT FOR ITS FLOP.
$$$

The Jackass and trusted colleague Steve StAngelo are not alone in belief that
the Bakken Energy range is a deception,
a ponzi scheme, and a myth toward achieved
independence. Like most American games,
it is replete with fraud and big corporate
profits. The decline rates per well
are devastating. The growth of new wells
cannot keep the pace. More energy is
required to extract per unit produced
for usage. Russian natural gas giant
Gazprom has pitched in with an opinion
on a Rossiya TV channel. CEO Aleksey
Miller believes the extraction of shale
gas in the United States is unprofitable and the bubble will
burst soon for all to see. He said,
"Currently, there are not any
projects that we know of where shale
gas production would be profitable.
Absolutely all the bore holes [operate
at losses.] The United
States is not a
competitor. We are skeptical about shale
gas."Russia uses exactly the same
fracking technologies. Gazprom extracts
gas out of coal in the Kuznetsk Basin
in southwestern Siberia.
In Miller's opinion, the US
will remain a nation in deficit for
natural gas. Earlier the head of Lukoil,
another Russian energy giant, also expressed
skepticism over the excitement around
shale gas revolution. Lukoil President
Vagit Alekperov went on to describe
the tricky wells and hydraulic fracturing
methods, calling it an achievement,
but hardly a revolution. The major drawback
for shale extraction is the quick depletion
of wells, along with nasty environmental
damage to ground water. In the US,
none other than Halliburton has the
monopoly on fracking chemical sales.
Thus the hype and USGovt support. See
the RT News article (CLICK HERE).

A footnote of interest. Russia is the largest producer of natural gas in
the world, with the United
States a close
second. Beyond the two leaders, a big
drop-off is seen on the list. Qatar
production amounts to 15% of the US output. Therefore, per capita and per sqkm,
Qatar
ranks #1 in the world. See the Wikipedia
data (CLICK HERE).
Second footnote of exposure intrigue.
Lunatic projections by USGovt inspired
monkeys committed gross errors in assessing
the Utica project
in Ohio.
It does not contain $500 billion in
shale oil. It might not contain 1/10-th
of 1% of that dreamy estimate. Drillers
that set up rigs amid the rolling farmland
of eastern Ohio
on the goony projections have begun
to pack up and ship out. Land prices
that hosted drillers had gobbled up
have fallen by up to one third. Four
of the biggest stakeholders in the untapped
deposits have posted all or part of
their acreage for sale. The list includes
Chesapeake Energy (the biggest US shale lease owner), EnerVest,
and Devon Energy. They have bugged out
since early results show sharply lower
production than their predictions. The
shale bubble continues to burst. Worse
still, sorely lacking is the construction
of processing units and pipelines to
provide a route to market for Utica production. Not only have drill results been
pathetic, but the pace of drilling has
been hindered by a lack of infrastructure
that might require a $30 billion investment
over three years. Not gonna happen.
See the Bloomberg article (CLICK HERE).

◄$$$ GAZPROM AND ISRAEL
HAVE UNITED OUT FROM BEYOND THE AMERICAN
SHADOW. THE NEW FLOATING TAMAR PLATFORM
WILL EXPORT NATURAL GAS THROUGH THE
RUSSIAN GIANT GAZPROM. ALSO QATAR AND IRAN HAVE MADE A LARGE NATGAS DISCOVERY. THE US-ALLIES
WILL ABANDON THE PETRO-DOLLAR ONE NATION
AT A TIME. THE NEW ENERGY LEADER IS
RUSSIA.
THEY WILL BUST THE PETRO-DOLLAR AS A
MISSION.
$$$

In February, Israel signed a major deal
with Russian energy giant Gazprom for
the exclusive rights to export liquefied
natural gas (LNG) produced from the
Tamar floating plant. In late March, the Tamar rig went
online with production. Israel will reduce its natgas
imports by a projected $275 million
per month. For a small nation, that
is a huge amount and a positive jolt
to their economy. The Bank of Israel
expects flow from the Tamar field will
improve the nation's Current Account
balance by as much as $3 billion this
year. For every $1 billion improvement
in the balance, the shekel exchange
rate should appreciate about 1%, the
bank has estimated. The Tamar gas field
is estimated to contain 9 trillion cubic
feet of natural gas. It will be developed
by a group that includes Noble Energy,
Delek Drilling-LP, Avner Oil Exploration,
and Isramco Negev. The combined discoveries
over the past three years could provide
the country with enough gas to meet
the national needs for 150 years. The
implication is for export potential,
and thus the Gazprom connection for
export delivery. The impact is reduced
imports, higher tax revenues, and cheaper
supply, a big positive for the economy,
if not a degree of energy independence.
The Tamar and Dalit fields could supply
Israel
with gas for two decades. The larger
Leviathan field is estimated to hold
18 trillion cubic feet of gas, according
to Noble.

The three gas fields provide Israel with reserves whose
volume is over 14 times larger than
the total proven gas reserves in Germany, according to the BP World Energy Report from last June 2012. Germany
has over 10 times the population. The
global leader in natgas reserves is
Russia obviously, whose twelve
timezones are truly expansive. Curiously,
the moderately sized nation of Iran
holds the #2 spot in natgas reserves.
The #3 spot is taken by Qatar, the emirate on the Persian
Gulf. In mid-March, Qatar announced a giant discovery of natgas, its
first since 1971. The deposit measures
2.5 trillion cubic feet, is called the
North Field, shared with neighboring
Iran. The stake commanded by Qatar will add 900 trillion
cubic feet to its reserves. See the
Bloomberg article (CLICK HERE).

The connection to Cyprus is clear, and demonstrates
the dominant role to be played by Gazprom.
The major driller Nobel Energy is also
drilling in Cyprus. The news openly cites natgas volumes and
fund flows and the effect to economies,
but they tend to avoid discussion the
infrastructure to transport the gas.
It is expensive and only Gazprom has
the momentum to supply Europe and Great Britain. Their existing pipelines are extremely
broad and impressive. They also have
the military protection to do so from
the Mediterranean Sea to the remote
eastern end of Siberia. As Russia
encroaches to develop natural gas projects,
to build natural gas pipelines, and
to form a veritable natural gas cartel,
a strategy has appeared to surround
the Petro-Dollar in the Middle
East. The rejection of the USDollar
will occur step by step, and probably
include Israel.

Tamar Platform Region

Some extracted details on Tamar (shown above) from public domain data. The Tamar
gas field is located in the Mediterranean
Sea off the coast of Israel. The field is located in Israel's exclusive economic zone, roughly 80 kilometres
(50 miles) west of Haifa
in waters 1700 meters (5600 ft) deep.
While there have been small oil &
gas discoveries in Israel
over the decades, Tamar was the first
large scale hydrocarbon resource discovered
in the country. It was also the
first gas discovery made in geological
layers dating back to the OglioMiocene
era, in the lesser explored Levant basin
of the Eastern
Mediterranean. Since Tamar's discovery,
large gas discoveries have been made
in other analogous geological formations
of the same age in the region. Since
Tamar was the first such discovery,
these gas containing formations have
become collectively known as Tamar sands.

◄$$$ GAZPROM HAS PLANS FOR THE CAPTURE OF EUROPE.
GAZPROM HAS PLANS FOR GREATER LIQUEFIED
NATURAL GAS SUPPLY TO ASIA.
GAZPROM HAS MADE INROADS IN SOUTH AMERICA
WITH BOLIVIA. GAZPROM IS GOING GLOBAL WHILE ROSNEFT
ECLIPSES EXXON-MOBIL. $$$

The Gazprom expansion plans are impressive and comprehensive. They will add
a third parallel line to the Nord Stream
pipeline on the Baltic seabed to reach
Western Europe, thus bypassing the controversial
Ukraine
area replete with lingering disputes.
They will extend the third line to supply
the Netherlands
and Great Britain. This would
boost the Nord Stream capacity from
the existing 55 billion cubic meters
(bcm) to more than 80 bcm per year.
Full stream flow is expected by years
2017-2018. The supply of Russian
natgas to Europe will offer Russia
a tremendous geopolitical calling card,
one the United States does not have. See the Asia
Times article (CLICK HERE).
The US can offer bank weapons on SWIFT
windows, airport security radiation
tools, global central bank gold raids,
oversized embassies for employing insurgents,
drone weapons to splat civilian camps,
banking group hideouts for security
agents doing espionage, and various
nefarious projects to further the USDollar
hegemony. The US
offers a wide assortment of nazi tools,
with very little reinforcement for commerce.
The US
could aid nations in infrastructure
to deliver military weaponry, but not
for energy supply. The nation building
strengths of the United
States were plainly
evident in Iraq.

Gazprom has plans for Asia. The Russian giant expects to bring online the LNG plant at the
Pacific port
of Vladivostok
in 2018. Then later it expects to double
its output capacity to 10 million tonnes
per year in the following two years.
This is the first firm timeframe with
scheduled output revealed by the firm.
Russian President Putin has urged closer
ties to be forged with expanding Asian
markets. See the Business Times article
(CLICK HERE).
Gazprom has plans for Greece.
They involve some competition with SOCAR,
the Azerbaijan state oil firm, for bids to acquire
the Greek public gas corporation DEPA.
The privatization program will impoverish
Greece
and enable exploit by the invited carpet
baggers. The competition appears fair,
although the firms are of very unequal
size. SOCAR has ambitions to serve the
EuroZone market. Greece
is the only entry point to South
Europe. The firm wants to keep the Greek
market under control in order to deploy
the infrastructure toward export up
to 1 billion cubic meters to the Mediterranean
country via the Turkey-Greece Interconnector.
See the Neurope article (CLICK HERE). Gazprom
has plans for Bolivia.
They will purchase a 20% stake from
French Total in the vast gas fields
in Bolivia. Total will retain
60% ownership in the fields, while Techint
Group from Argentina will hold 20%. The
Bolivian Energy minister Juan Jose Sosa
made the announcement. See the MercoPress
article (CLICK HERE).

◄$$$ THE UK STORY ON ENERGY IS OMINOUS
AND REEKS OF SUSPICION. THE NORTH SEA
OUTPUT IS DOWN OVER 50% IN THE LAST
10 TO 12 YEARS. IT IS COMPENSATED BY
WARS SUPPORTED BY THE BRITISH MILITARY
TO SECURE OIL AND BY A DECADE OF UNREGULATED
BANK DERIVATIVE CORRUPTION. THE ALARM
WAS SOUNDED IN YEAR 2000, BUT THE PAIN
WAS FELT BY 2008. THE REACTION WAS WAR
AND FRAUD. $$$

The UK North Sea oil production data tells a story that should cause alarm and
deep concern. The historical origin
of the adventure into the North
Sea for the British came after the 1971
shutter of the Gold window by President
Nixon, to be sure a man complicit with
the syndicate. My personal belief is
that Nixon was privy to the Kennedy
assassination plans for banker defiance
in wishing to adopt the Silver Certificate,
was promised the White House throne,
but on condition that he broke the Gold
Standard which would permit the vast
expansive prolonged era of fascist banker
criminal rule. The Arab OPEC embargo
against the United
States for its
support of Israel
was a bump in the road, but its outcome
firmed the Petro-Dollar accord whereby
the Arabs would recycle oil surplus
into USTBonds. The black gold defacto
standard was born, and an iron hand
to dictate global banking systems would
prevail for 40 years. The British energy
production actually hit a peak in 2000,
only to fall noticeably by about 7%
in oil output the following year. Then
came the 911 events and a quick annexation
of the Iraqi lands, flush with oil fields.
Assume zero coincidence, but only if
brain-dead. The Iraqis also were emptied
of their considerable gold bullion store
in the central bank, adorned by the
utter propaganda of yellow painted bricks
discovered by the intrepid USArmy.

The UK energy output plunge from years 2005 to 2008
was deep, a hefty 25% in oil output
and a ripe 20% in natural gas output.
The reduction had to dent the UK finances badly, cause some worry, and accelerate
the alternatives for new income sources.
Enter the extreme financial transformation
of London
City, which
masked the energy shortfall. All
hail the London
bankers, whose magic wand produced fresh
GBP billions in vaporous bank asset
foundation! The housing bubble with
supporting mortgage finance bubble was
puffed. It produced revenue. The leveraged
buyouts amplified. They produced revenue.
The derivative trade enjoyed a mushroom
of growth, such as the heavily corrupted
LIBOR schemes. It produced revenue.
So London reacted with financial chicanery of the corrupt type with asset
bubbles and unregulated toxic spew,
all of which compensated in order to
provide adequate revenue to cover its
energy bills. The last two years
have seen a war in Libya
to liberate (and disembowel) Qaddafi
of his 144 tons of gold bullion held
in London, which will never touch the Libyan people's
hands. The most recent event is another
war to liberate Mali
of its gold and uranium, surely not
to clear out the invisible Islamic terrorists.
The nazi bankers always deploy the invisible
enemy card, standard from the playbook.
Finally, two main events. The London bankers have agreed to install the Chinese Yuan Swap Facility,
sure to garner more bond deals but legitimate
revenue. The planted Yuan tree will
bear much fruit and bank revenues. The
other main event is the agreement to
accept Russian natural gas, conditional
upon a devalued British Pound currency.
A closer look will indubitably show
the flow of gold bars to the Kremlin,
to pay the bills. They might be recast
German gold bars in the final analysis.

◄$$$ THE NORTH SEA HAS ANOTHER PLAYER ENDURING THE
PAIN OF REDUCED REVENUES. THE NORWEGIAN
OIL SPIGOT HAS BEEN REDUCED IN FLOW.
THEIR GRAND SOVEREIGN WEALTH FUND IS
THE NEW PRIZED TARGET, LUSTED FOR BY
LONDON
BANKERS. $$$

For the ninth consecutive year, Norwegian oil production has fallen. In 2001,
Norway realized oil output of 3.4 million barrels
per day. By 2010, output had fallen
to 2.1 million barrels. The decline
pushed the nation of Norway
into 13th place among global producers
from a lofty 6th rank just nine years
earlier. Norway, the land of blue-eyed
Arabs, used to be a major oil exporter,
the fourth largest in the world in a
field dominated by the likes of Saudi
Arabia, Russia, Nigeria, even Canada
and Mexico. The crude oil price rose
in a way to compensate for lower output.
Norway is still profiting heavily on
its oil platforms that also feature
natgas output. But the future looks
less bright with anticipated decline
of around 30% in the next five years.
The Norwegian oil fund has surpassed
the United Arab Emirates fund, Abu Dhabi Investment
Authority, and the ADIA, among the parade
of Sovereign Wealth Funds.

The Norwegian oil fund abides by rules. Its 3.1 trillion value in Norway Krones
(=US$540 billion) was designed to secure
the nation from adverse effects occurring
due to oil price fluctuations. Only
4% of the proceeds of the fund can be
used to finance the state budget. The
Oslo
bombing incident in 2011 was not a lunatic
lone gunman, the favorite device of
Anglo-American security hoodlum architects.
It was an orchestrated attack on Norway to release its gigantic sovereign wealth
fund for placement in London,
perpetrated by MI6 of British security.
The Oslo leaders in the Norwegian Govt refused. Thus the attack with false
story associated, parroted by the controlled
Western press. See the SVD article (CLICK
HERE).
Thanks to Bengt in Sweden,
a Hat Trick Letter subscriber.